Lincoln National Said to Seek Deal to Cut Life Insurance Risk

Lincoln National is pursuing a reinsurance transaction to shift "billions of dollars" of life-insurance reserves off its balance sheet, according to people familiar with the matter. The deal, if completed, could materially improve reported reserves and capital/leverage metrics; size, counterparty and structure were not disclosed. Monitor for details on timing and accounting treatment, as the announcement could move the stock by low-single-digit percentages depending on magnitude and regulatory impact.

Analysis

Lincoln National is pursuing a reinsurance transaction to shift "billions of dollars" of life-insurance reserves off its balance sheet, according to people familiar with the matter. The deal, if completed, could materially improve reported reserves and capital/leverage metrics; size, counterparty and structure were not disclosed. Monitor for details on timing and accounting treatment, as the announcement could move the stock by low-single-digit percentages depending on magnitude and regulatory impact.