NU Online News Service, July 31, 12:34 p.m. – Lincoln National Corp. wants to use the proceeds from the pending Lincoln National Reassurance Company sale to expand its wealth accumulation business.
Lincoln National, Philadelphia, agreed Monday to sell Lincoln Re to Swiss Reinsurance Company, Zurich, for $2.5 billion.
Lincoln National will probably pass on commercial banks, but it could use the Lincoln Re proceeds to buy life insurance business, annuity business, distribution capabilities or a trust bank, according to Lincoln National Chairman Jon Boscia.
Although the mid-level wealth accumulation market is crowded, competition for the very-high-wealth market is sparse, Boscia says.
Boscia names Manulife Financial Corp., Toronto, and Pacific Life Insurance Company, Newport Beach, Calif., as examples of the small number of companies that he sees has direct competitors in the very-high-wealth market.
Pursuing the very-high-wealth market is Lincoln National's "strategic direction," and the Lincoln Re deal should help the company move in that direction, Boscia says.
