Lincoln National Corp., the seller of life insurance and retirement products, entered a reinsurance deal this month in which Wells Fargo & Co. (WFC) agreed to backstop new sales of variable annuity guaranteed-benefit products.
The agreement provides 50 percent co-insurance on as much as $8 billion of sales through 2014, Radnor, Pennsylvania-based Lincoln said today in a statement, which didn’t identify the counterparty.
Wells Fargo & Co.’s Union Hamilton Re is providing the coverage, Michael Arcaro, a spokesman for Lincoln, said in an interview. Amy Jones, a spokeswoman for San Francisco-based Wells Fargo, the fourth-biggest U.S. bank, confirmed the company’s role and declined to comment further.
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