RADNOR, PA — Lincoln Financial Group (NYSE: LNC) recently completed the sale of its wealth management division to Osaic, Inc., a move that signifies a strategic pivot towards bolstering its insurance solutions and workplace offerings. The transaction, which includes the transfer of all subsidiary entities under Lincoln’s wealth management arm, nets the company an approximate $650 million capital benefit. This influx of capital is earmarked for improving Lincoln’s risk-based capital ratio while also allowing for a reduction in its leverage ratio.
Ellen Cooper, Chairman, President, and CEO of Lincoln Financial Group, underscored the importance of this decision as part of the company’s broader strategic focus. “Lincoln is focused on continuing to execute on our enterprise strategic pillars, leverage our core strengths to grow our individual insurance solutions and workplace solutions businesses, and deliver long-term value for all of our stakeholders,” said Cooper. She also expressed enthusiasm about the future collaboration with Osaic, emphasizing the mutual benefits of a strategic partnership aimed at offering superior financial products and solutions.
The initial announcement of the definitive agreement to sell Lincoln Financial Advisors Corporation (LFA) and Lincoln Financial Securities Corporation (LFS) to Osaic was made in December 2023. This sale translates to a shift of approximately 1,450 financial professionals, alongside the Lincoln home-office staff who support the wealth management operations, to Osaic’s expansive wealth management network.
Despite shedding its wealth management business, Lincoln retains control over Lincoln Financial Distributors (LFD), its leading wholesale distribution franchise. LFD plays a crucial role in driving organic growth across Lincoln’s array of retail products through a vast distribution network. This segment also encompasses Lincoln’s independent agents, now integrated into LFD. Further strengthening its post-sale structure, LFD will expand its distribution relationship with Osaic, leveraging both the transitioning financial professional network and Osaic’s extensive financial advisor network.
This strategic divestiture positions Lincoln Financial Group to concentrate on its core insurance and workplace solution offerings, setting the stage for sustained growth and stability. The additional capital not only enhances Lincoln’s financial health but also provides the flexibility to pursue new opportunities and innovations within its retained business sectors. With the strengthened partnership with Osaic, Lincoln aims to continue serving the financial needs of its clients effectively, heralding a new chapter in its corporate evolution.
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