Lincoln National Corp. announced that it was transferring its U.K. sales force of approximately 1000 to the Inter-Alliance Group Plc, an independent financial advisory group, after the failure to conclude a sale of its U.K. based business to an unnamed company.
Lincoln had earlier announced plans to withdraw from the U.K. market, and was hoping to find a buyer for its operations there, however, the deal failed to materialize.
“I was deeply disappointed to be informed yesterday that the company we had been in discussions with for months told us they would not proceed with the purchase of our UK operation,” said Lincoln president and CEO John Boscia. “Given these circumstances and the transfer of our sales forces, we will not be writing new business.”
Boscia assured policy holders and investors, however that the company would “stand behind its commitments,” and “continue to investigate financial and reinsurance strategies to maximize shareholder value and limit our exposure going forward.”
Lincoln projects the cost of the restructuring to be between $64 million and $83 million. “Approximately $46 million is expected to be recorded in the third quarter, with the remaining recorded in the fourth quarter,” said the announcement.
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