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Lincoln National's (LNC) Reinsurance Deal to Aid Annuity Suite

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Lincoln National Corporation LNC recently reached a flow reinsurance agreement with the risk management solutions provider Talcott Resolution Life Insurance Company.

The deal paves the way for the company to reinsure its flagship variable annuity living benefit rider sales of up to $1.5 billion. Only those businesses will be offered coverage through the transaction, which are issued between Apr 1, 2021 and Jun 30, 2022 period. Besides, Lincoln National will continue to execute account administration and recordkeeping of the policies as part of the reinsurance agreement.

The latest move reinforces Lincoln National’s sincere efforts to ink block and flow deals with the leading reinsurers for protecting its businesses against considerable losses. The deal also aims to return value to the company’s shareholders as it usually resorts to shareholder-friendly moves through share buybacks and regular dividend payments.

Recently, it inked a reinsurance deal with the well-established life insurance group Resolution Life’s unit, which is expected to produce capital worth $1.2 billion. The transaction proceeds will be utilized to pursue $900 million of incremental share buybacks and with the leftover funds, the company intends to primarily pay off debts.

The recent agreement also........

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