Lincoln Financial and Fortitude Reinsurance Company announced that they have entered into an agreement under which Lincoln will cede approximately $28 billion of in-force ULSG, MoneyGuard and fixed annuity statutory reserves to Fortitude Re. The reinsured block consists of approximately $9 billion of ULSG statutory reserves, or about 40% of Lincoln’s total in-force ULSG, nearly $12 billion of MoneyGuard statutory reserves, or about 80% of Lincoln’s total in-force MoneyGuard, and nearly $8 billion of fixed annuities statutory reserves, or about 40% of Lincoln’s total in-force fixed annuities. "Today’s transaction with Fortitude Re marks significant progress in our efforts to reduce our balance sheet risk, improve our capital position and increase ongoing free cash flow," said Ellen Cooper, president and CEO of Lincoln Financial Group. "With our leadership team in place, we are rapidly executing on actions to fortify our balance sheet, and we remain committed to further enhancing the pace of capital generation and long-term profitable growth." The transaction is expected to be dilutive on a GAAP basis.
Published first on TheFly
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