Lincoln Financial Group today announced a $28 billion reinsurance deal with Fortitude Reinsurance.
The Radnor, Pennsylvania-based life insurer said the deal includes $12 billion in reserves related to its MoneyGuard policies, which offer long-term care benefits tied to life insurance policies, or about 80% of total reserves for in-force MoneyGuard policies.
The deal also includes $9 billion in reserves for universal life policies with secondary guarantees, or 40% of the reserves for that type of business, and $8 billion in reserves for fixed annuities, or 40% of the reserves for the company's fixed annuities.
What It Means
Ellen Cooper, Lincoln's CEO, said the Fortitude Re deal will help Lincoln reduce risk levels and improve its capital position.
Fortitude Re
Fortitude Re is backed by a consortium of investors led by the Carlyle Group and T&D Insurance Group.
It now manages life and annuity business backed by $72 billion in reserves. In 2022, it acquired a $31 billion block of variable annuities from Prudential Financial.
It has offices in Brentwood, Tennessee; Jersey City, New Jersey; and Hamilton, Bermuda.
The Deal
The deal is subject to regulatory approvals.
