Osaic to Buy Lincoln’s Wealth Unit for $700M


The deal could result in a firm with a total of about 11,950 financial professionals and some $608 billion in assets.

Osaic, formerly Advisor Group, says it is buying broker-dealers and RIAs Lincoln Financial Advisors and Lincoln Financial Securities. The two wealth management firms are owned by Lincoln National Corp., which does business as Lincoln Financial Group.

The transaction, according to Lincoln, should provide it with some $700 million upon closing,

The deal could add about 1,450 advisors and roughly $108 billion in assets — $71 billion in assets under administration and $38 billion in assets under management — to Osaic’s 10,500-plus financial professionals and its over $500 billion in AUA. 

“We’re excited to welcome Lincoln Wealth’s impressive leadership team, financial advisors and other dedicated employees to Osaic. This acquisition was driven by the strong partnership between Osaic and Lincoln Financial Group which will continue into the future,” said Osaic CEO Jamie Price.

Lincoln’s wealth business was founded in 1969. It is led by David Berkowitz and its two wealth groups will join Osaic as stand-alone entities following the completion of the transaction, according to a press release.

“Osaic is a company we’ve come to know well. … and we believe that together, we can aid advisors’ growth in new ways,” said Berkowitz, in a statement.

Osaic is owned by Reverence Capital Partners, a financial-services focused private equity group, which is seeking to sell up to 20% of its stake in the wealth management firm, it was reported earlier this month.

Its stake in Osaic — which includes Osaic Wealth, Triad Advisors, Osaic Institutions and Woodbury Financial Services — is estimated to be worth $2.5 billion.

Lincoln says it will keep its wholesale distribution franchise and its channel of independent agents. Its remaining businesses include annuities, life insurance, group protection and retirement plan services; and its account balances were $290 billion as of Sept. 30.

Lincoln has been working to rebuild its capital levels since November 2022, when it announced that it was recording a $2.6 billion net loss because of adjustments to guaranteed universal life insurance policy assumptions, the lingering effect of COVID-19 life insurance claims and the effects of the COVID-19 pandemic on reinsurance costs.

The company’s risk-based capital ratio, a measure of its capital strength, was about 375% to 385% on Sept. 30, down from 427% at the beginning of 2022 and below  its 400% targeted minimum RBC of 400%, according to company financial reports.

Lincoln’s main insurance-writing company, Lincoln National Life Insurance Company, had $8.4 billion in capital and surplus on June 30, the financial statement it filed with state insurance regulators for the quarter shows.

Lincoln expects to use the capital benefit from the transaction with Osaic mainly to increase its RBC ratio, the company said.

The transaction should not have a material effect on free cash flow or earnings, it added.

– Allison Bell contributed to this report.

Pictured: Osaic CEO Jamie Price


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