Lincoln Financial Group Enters Agreement To Sell Wealth Management Business To Osaic, Inc.; Transaction Is Expected To Provide Approximately $700M Of Capital Benefit To Lincoln Upon Closing
Portfolio Pulse from Happy Mohamed
Lincoln Financial Group (NYSE:LNC) has agreed to sell its wealth management business to Osaic, Inc. The deal, expected to close in the first half of 2024, will provide Lincoln with a $700 million capital benefit, which will be used to improve its risk-based capital ratio and reduce its leverage ratio. The transaction includes the sale of Lincoln Financial Advisors Corporation and Lincoln Financial Securities Corporation, with approximately 1,450 financial professionals. Lincoln will retain Lincoln Financial Distributors and its independent agents, and expand its distribution relationship with Osaic. There are no expected material impacts to Lincoln's free cash flow or earnings from this transaction.
December 14, 2023 | 9:07 pm
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Lincoln Financial Group's sale of its wealth management business to Osaic, Inc. is expected to provide a $700 million capital benefit, aimed at improving the company's financial ratios without affecting free cash flow or earnings.
The sale of Lincoln's wealth management business is a significant strategic move that will provide a substantial capital benefit, which is likely to be viewed positively by investors. The capital infusion is intended to strengthen the company's balance sheet by improving its risk-based capital ratio and reducing its leverage ratio. The fact that the transaction is not expected to materially impact free cash flow or earnings suggests a neutral to positive effect on the stock price in the short term. The high relevance score is due to the direct involvement of Lincoln in the transaction, and the importance score reflects the substantial nature of the capital benefit and its potential impact on the company's financial health.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100