Swiss Re Resolves Dispute with Lincoln National

October 30, 2002

Swiss Re announced that it has resolved its dispute with Lincoln National Corporation related to Swiss Re’s December 2001 acquisition of Lincoln Re.

Under the terms of the settlement Lincoln will pay Swiss Re $295 million in cash. The company said that this “satisfies Swiss Re’s demand for additional assets to support the closing balance sheet liabilities delivered by Lincoln and extinguishes Lincoln’s obligation to indemnify Swiss Re for adverse development on Lincoln Re’s exited lines of business.”

Under the original contract terms the indemnification was limited to $100 million. Swiss Re said that it was “pleased by the outcome of the dispute, ” and, as it had previously stated, “the resolution has no adverse effect on its financial position or results of operations, ” but would somewhat reduce the purchase price of Lincoln Re.

John Coomber, Head of Swiss Re’s Life & Health Business Group stated that, “We are pleased that the dispute has been resolved and we are looking forward to focusing on our ongoing reinsurance relationship with Lincoln National Corporation.”

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