Lincoln Monetary Group at the moment introduced a $28 billion reinsurance cope with Fortitude Reinsurance.
The Radnor, Pennsylvania-based life insurer mentioned the deal embrace $12 billion in reserves associated to its MoneyGuard insurance policies, which supply long-term care advantages tied to life insurance coverage insurance policies, or about 80% of complete reserves for in-force MoneyGuard insurance policies.
The deal additionally contains $9 billion in reserves for common life insurance policies with secondary ensures, or 40% of the reserves for that sort of enterprise, and $8 billion in reserves for mounted annuities, or 40% of the reserves for the corporate’s mounted annuities.
What It Means
Ellen Cooper, Lincoln’s CEO, mentioned the Fortitude Re deal will assist Lincoln scale back danger ranges and enhance its capital place.
Fortitude Re
Fortitude Re is backed by a consortium of traders led by the Carlyle Group and T&D Insurance coverage Group.
It now manages life and annuity enterprise backed by $72 billion in reserves. In 2022, it acquired a $31 billion block of variable annuities from Prudential Monetary.
It has workplaces in Brentwood, Tennessee; Jersey Metropolis, New Jersey; and Hamilton, Bermuda.
The Deal
The deal is topic to regulatory approvals.
