Talcott Financial Group, an international life insurance group which has a reinsurer in Bermuda, has announced a $6.3 billion reinsurance transaction with American annuities provider and life insurer Lincoln Financial.

Under the terms of the agreement, Talcott will reinsure an approximately $5.8 billion run-off block of universal life with secondary guarantee policies, along with approximately $500 million of funding agreement liabilities. Lincoln Financial will continue to administer and service the reinsured policies.

Talcott has offices based in both Bermuda and the Cayman Islands, as well as Connecticut, New York, and North Carolina.

This is the second reinsurance agreement between Talcott and Lincoln Financial, following a variable annuity flow reinsurance transaction announced in 2021, demonstrating Talcott’s ability to deliver complex risk transfer solutions at scale and its ongoing commitment to supporting institutional clients with their strategic risk management objectives.

Imran Siddiqui, chief executive officer of Talcott, said: “This transaction reflects our expanding scale, commitment to executing our growth strategy, and bolsters our role as a trusted partner for clients across the insurance industry.”

Ellen Cooper, chairman, president, and chief executive of Lincoln Financial, said the deal extends the company's multiyear effort to improve capital quality. “Further reducing our exposure to a legacy, capital-intensive block marks another deliberate step in our multi-year strategy to fortify Lincoln’s balance sheet, strengthen our financial flexibility and create long-term value for our shareholders,“ she said.

The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.

RBC Capital Markets and TD Securities (USA) served as financial advisers, while Conyers Dill & Pearman and Debevoise & Plimpton served as legal counsel for this transaction.