Lincoln National Corp.: Analyzing Capital Flexibility and Potential SGUL Risk Transfer Scenarios

Research evidence excerpt

Lincoln National Corp.: Analyzing Capital Flexibility and Potential SGUL Risk Transfer Scenarios

Equity Research

North America Insurance/Life

22 July 2026

Lincoln National Corp.

Analyzing Capital Flexibility and

Potential SGUL Risk Transfer

LNC OVERWEIGHTScenarios

North America Insurance/ POSITIVE

Ahead of the quarter, we took a deeper look into Lincoln's Life Price Target USD 45.00

holdco liquidity positioning. Our analysis reinforces our view Price (21-Jul-26) USD 41.82

that the company has the flexibility to explore several Potential Upside/Downside +7.6% Source: Bloomberg, Barclays Research

redeployment opportunities, including the resumption of

buybacks and risk transfers on their SGUL business. North America Insurance/Life

Alex Scott, CFA

+1 212 526 1561

We conducted a deeper analysis into Lincoln's holding company liquidity position to alex.scott@barclays.com

understand the company's capital flexibility, including progress towards resuming repurchases BCI, US

and the potential for a reinsurance transaction. A recent Bloomberg article stated that the

Anling Chencompany had been in advanced stages of discussions with Talcott (private; not covered) to

+1 212 526 5995

reinsure $5 billion of their remaining secondary guarantee universal life (SGUL) block, which anling.chen@barclays.com

corroborates management's recent commentary that they are exploring strategic options in BCI, US

their life insurance business. In our view, a risk transfer on the block could be a material uplift to

Justin Lee, CFAforward cash flow as the business is likely a negative drag to capital generation due to pressure

+1 212 526 0912

from previous lapse assumptions. However, concerns remain that the negative ceding justin.lee@barclays.com