Lincoln Financial Group announced that it has completed the sale of its wealth management business, including all ownership interests in the Lincoln subsidiary entities comprising that business, to Osaic – one of the nation’s largest providers of wealth management solutions. And the sale also provides Lincoln with about $650 million of capital benefit – which the company will use primarily to increase its risk-based capital ratio. Lincoln also plans on using part of the capital benefit to reduce its leverage ratio.
Lincoln had first announced its definitive agreement to sell its independent broker-dealer and registered investment advisory firms – Lincoln Financial Advisors Corporation (LFA) and Lincoln Financial Securities Corporation (LFS) – to Osaic in December 2023. Through the closing of this transaction, the entities – which comprise a national network of about 1,450 financial professionals, together with Lincoln’s home-office employees who support the wealth management business – will transition to Osaic.
Lincoln also retains all aspects of Lincoln Financial Distributors (LFD), its wholesale distribution franchise, which drives organic growth across Lincoln’s distinct retail product value propositions through a broad distribution network. Plus, Lincoln also retains its channel of independent agents, which is now part of LFD. As part of the transaction, LFD is also further expanding its strong distribution relationship with Osaic, including the network of financial professionals that will transition as part of this transaction and Osaic’s broader financial professional network.
KEY QUOTE:
“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. We look forward to our long-term strategic partnership with Osaic as we continue to provide financial professionals with products and solutions that will help them best serve their clients.”
– Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group
