Swiss Re to Buy Lincoln Reinsurance Business

Swiss Reinsurance Co. agreed Sunday to buy Lincoln National Corp.’s reinsurance business for $2 billion.

Swiss Re will integrate Lincoln’s reinsurance operations into Swiss Re North American Life & Health unit, the company said in a statement. Company officials weren’t immediately available for comment.

Swiss Re, based in Zurich, will raise equity to finance the acquisition, which it hopes to complete in the fourth quarter, the company said. The company will provide further details of that equity offer in its semiannual report, which it will release Sept. 7.

Philadelphia-based Lincoln National will retain $500 million of capital currently supporting the reinsurance unit. The company will use the proceeds of the sale to finance acquisitions and to repurchase stock, Jon Boscia, Lincoln National’s chairman and chief executive said in a statement. Lincoln said it will repurchase as much as an additional $500 million of its shares.

Swiss Re’s American depositary receipts, each representing one-twentieth of a registered share, rose 25 cents to $103 Friday. Lincoln National rose 67 cents to close at $49.17 on the New York Stock Exchange.