Swiss Re to Acquire and Lincoln National Reinsurance Operation

August 1, 2001

Lincoln National Corporation today announced that Swiss Re will acquire Lincoln’s reinsurance operation, Lincoln Re, headquartered in Fort Wayne, Indiana, for $2 billion.

Swiss Re will integrate Lincoln’s reinsurance operations into the Swiss Re North American Life & Health unit, strengthening its position as the leader in the world’s largest life and health reinsurance market.

In addition to the purchase price, Lincoln will retain $500 million of capital currently supporting the business. Swiss Re will enjoy tax benefits which will offset the additional capital to be established. The transaction is expected to close in the fourth quarter.

It is Swiss Re’s intention to raise equity to finance the transaction. The details of that will be communicated on Sept. 7 with the publication of the company’s half-year results.

Swiss Re, one of the world’s leading reinsurers with over 70 offices in more than 30 countries, had in the 2000 financial year gross premium volume amounting to $15.4 billion. Swiss Re Life & Health America Inc. is the U.S. operation of Swiss Re Life & Health, a specialist global business group of Swiss Re. The business group delivers capital and risk management solutions to its clients – life and health insurers worldwide — across a wide spectrum of products. Headquartered in London, the business group operates through a network of 37 offices in 31 countries, serving clients in virtually every country in the world.

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. With headquarters in Philadelphia, Penn., Lincoln National Corporation has consolidated assets of $96 billion and annual consolidated revenues of $6.9 billion. Through its wealth accumulation and protection businesses, the company provides annuities, life insurance, 401(k) plans, life-health reinsurance, mutual funds, institutional investment management and financial planning and advisory services.

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