Lincoln National to sell wealth management business to Osaic

Lincoln Financial Group announced that it has signed a stock purchase agreement with Osaic, Inc. (Osaic), one of the nation’s largest providers of wealth management solutions, which will acquire Lincoln’s wealth management business, including all ownership interests in the Lincoln subsidiary entities comprising that business. The transaction is expected to provide approximately $700 million of capital benefit to Lincoln upon closing, which is anticipated to be used primarily to increase the company’s risk-based capital ratio. Lincoln also plans to use a portion of the capital benefit to reduce its leverage ratio. There are no expected material impacts to ongoing free cash flow or earnings as a result of this transaction. The transaction is expected to close in the first half of 2024, subject to customary closing conditions, including regulatory approvals. The transaction will include the sale to Osaic of Lincoln Financial Advisors Corporation (LFA) and Lincoln Financial Securities Corporation (LFS) – the company’s two independent broker-dealer and registered investment advisory firms. Together, these entities comprise a national network of approximately 1,450 financial professionals. Additionally, Lincoln’s home-office employees who support the wealth management business will transition to Osaic to continue to lead and support the business. Lincoln will retain all aspects of Lincoln Financial Distributors (LFD), its industry-leading wholesale distribution franchise, which drives organic growth across Lincoln’s distinct retail product value propositions through a broad distribution network. Lincoln will also retain its channel of independent agents, which will now be part of LFD. Additionally, as part of the transaction, LFD will further expand its strong distribution relationship with Osaic, including the network of financial professionals that will transition as part of this transaction, and Osaic’s broader financial professional network.