Lincoln Financial (NYSE: LNC) has closed a $6.3 billion reinsurance transaction with Talcott Financial Group, with an effective date of Oct. 1, 2026.

The transaction includes the reinsurance by a Talcott subsidiary of approximately $5.8 billion of in-force guaranteed universal life (GUL) statutory reserves, representing about 37% of Lincoln's remaining in-force GUL block.

Combined with a separate reinsurance transaction Lincoln completed with Fortitude Re in 2023, approximately 60% of Lincoln's total GUL block is now reinsured. Lincoln said it will continue to administer the reinsured policies.

According to the company's statement, the deal reduces Lincoln's exposure to a legacy, capital-intensive block of business. As of June 30, 2026, Lincoln reported $366 billion in end-of-period account balances, net of reinsurance.