• Transaction will generate approximately $1.2 billion in capital
• Approximately $900 million of proceeds to be used for incremental share repurchases and the remainder expected to be used primarily to pay down debt
• Transaction expected to be approximately 5% accretive to adjusted operating EPS

Lincoln Financial Group (NYSE: LNC) today announced it has entered into an agreement with Security Life of Denver Insurance Company, a subsidiary of Resolution Life, to reinsure approximately $9.4 billion of in-force executive benefit and universal life reserves. The transaction will generate approximately $1.2 billion of capital. The proceeds will predominantly be used to fund incremental share repurchases of approximately $900 million that we expect to be completed by the end of the first quarter of 2022. The remaining proceeds will be used for general corporate uses, primarily paying down debt. The transaction is expected to be approximately 5% accretive to Lincoln Financial's adjusted operating earnings per share and expand ROE in 2022.

“We are pleased to announce this transaction, which we expect to be highly accretive to EPS, expand ROE and maintain our overall high-quality business mix,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “We will continue to pursue opportunities to build additional shareholder value above our core strategy that is the basis for our long-term 8-10% growth expectations.”

Under the terms of the reinsurance agreement, Lincoln Financial will retain account administration and recordkeeping of the policies. The transaction will have no impact on Lincoln Financial’s relationship with, or commitments to, its distribution partners and policyholders. Additionally, Lincoln Financial remains focused on the continued growth of its Life Insurance business, including the sales of individual life insurance and executive benefits products.

The agreement is dated September 17, 2021, with an effective date of October 1, 2021. Closing of the transaction is subject to usual and customary closing conditions, but there are no regulatory approvals required to close the deal. The transaction is structured as a coinsurance treaty for the general account reserves and as a modified coinsurance treaty for the separate account reserves, with counterparty protections including a comfort trust and investment guidelines to meet Lincoln Financial’s risk management objectives.

Lazard acted as financial advisor and Sidley Austin LLP served as legal advisor to Lincoln Financial.

Conference Call

Lincoln Financial Group will host a conference call this morning, September 17, 2021, at 10:00 a.m. Eastern Time to discuss the details of this transaction.

Webcast Participants

The conference call will be broadcast live through the company website at www.lfg.com/webcast. Please log on at least fifteen minutes prior to the call to register and download any necessary streaming media software.

Phone/Question and Answer Session Participants

Due to changes implemented by our conference call provider, you must now pre-register to participate via phone at www.directeventreg.com/registration/event/2871028. You will receive a confirmation email that includes a dial-in number and unique Registrant ID. For security purposes, please do not share your Registrant ID.

Replay

A replay of the call will be available by 1:00 p.m. Eastern Time on September 17, 2021, through 12:00 p.m. Eastern Time on September 23, 2021. To access the re-broadcast, dial: (855) 859-2056 (Domestic) or (404) 537-3406 (International). Enter conference code 2871028.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $324 billion in end-of-period account values as of June 30, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ Best Large Employers and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

Forward-Looking Statements – Cautionary Language

Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, performance or financial results, including the closing of the transaction, the use of the transaction proceeds to fund share repurchases and paydown debt, and the timing thereof, the continued growth of our businesses, including our long-term growth expectations, and the expectation that the transaction will be approximately 5% accretive to Lincoln Financial's adjusted operating earnings per share and expand ROE in 2022. Our most recent Annual Report on Form 10-K, as well as other reports that we file with the SEC, include risk factors that could affect our future actions, businesses and financial performance and results. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors or to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

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