Talcott, Lincoln in reinsurance deal ‘not seen in the market in recent years'
Talcott Resolution Life Insurance and Lincoln Financial Group's insurance subsidiary have executed a flow reinsurance transaction, which the companies described as a “solution not seen in the market in recent years”.
The transaction marks the first flow variable annuity reinsurance in recent years for a product actively sold in the market. It also represents the first reinsurance deal for Talcott Resolution as it grows its business as an aggregator and reinsurance provider for the US life and annuity market.
Under the deal, Talcott Resolution will coinsure business written on Lincoln's flagship variable annuity living benefit rider.
The reinsurance treaty covers business written from April 1, 2021, through June 30, 2022, to a maximum of $1.5 billion. Lincoln will continue to service and administer the policies as insurer of the business.
Pete Sannizzaro (pictured), chief executive officer and president of Talcott Resolution, said: "This flow transaction is a solution not seen in the market in recent years and, as our first reinsurance transaction under Sixth Street ownership, is an important milestone for us."
" Lincoln is a proven, prudent underwriter and risk manager in the variable annuity business, and our experienced team of industry professionals was able to deliver a solution that met its needs," he added. "We look forward to growing our business as a reinsurance provider and insurance aggregator by continuing to offer creative solutions for our partners."
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