Editorial Briefing
Lincoln Financial has closed its $6.3 billion reinsurance transaction with Talcott Financial Group, effective 1 October 2026. A Talcott subsidiary takes on about $5.8 billion of in-force guaranteed universal life (GUL) statutory reserves, roughly 37% of Lincoln’s remaining GUL block, together with around $500 million of funding agreement liabilities. Lincoln will continue to administer the policies.

Why It Matters
GUL policies guarantee a death benefit whatever happens to the cash value, which makes them some of the most capital-intensive legacy liabilities in US life. Combined with Lincoln’s 2023 deal with Fortitude Re, about 60% of its GUL block is now reinsured. This is Talcott’s second deal with Lincoln, following a variable annuity flow arrangement in 2021.

JDCC View
Two of this issue’s names meet here. Fortitude, which took the first slice of Lincoln’s GUL book in 2023, is now building its own front door (story 3). Talcott, backed by Sixth Street and its West Grove Re sidecar, keeps adding blocks. Life legacy is consolidating around a small group of well-capitalised buyers, and sellers are coming back to them for second helpings.

Editorial Briefing
On 24 September, AM Best affirmed Premia Reinsurance Ltd’s Financial Strength Rating of A- (Excellent) and its Long-Term Issuer Credit Rating of “a-”, with a stable outlook. The agency still rates Premia Re’s balance sheet as very strong. It rates operating performance as adequate, business profile as neutral and risk management as appropriate.

Why It Matters
Premia’s operating returns fell in 2025 after adverse development on its casualty business, and it strengthened reserves again in 2026. AM Best expects results to recover on the back of strategic sales and new legacy deals, with improvement continuing into 2027. It also warns that any further near-term deterioration could put pressure on the rating or outlook. KBRA’s August affirmation gives the size of the hit: 2025 net losses of $56.9 million at Premia Holdings and $18.8 million at Premia Re, both driven by adverse reserve development.

JDCC View
A legacy acquirer short of its own reserve estimates is the risk at the heart of the run-off business model, and casualty is where it bites. The rating has held, but AM Best has set a condition: a rebound into 2027 is now built into the rating. Cedants who placed long-tail books with Premia will want to watch next year’s numbers.

Sources: AM Best press release, 24 Sept 2026; KBRA, 13 Aug 2026.

Editorial Briefing
The PRA and FCA consultations on a dedicated UK captive insurance regime (PRA CP11/26 and FCA CP26/29) close on Wednesday 14 October. The proposals were published in July. They would make “UK captive insurer” a separate category outside Solvency UK, starting with single-parent captives. Protected cell companies would follow once legislation allows.

Why It Matters
The proposed capital requirement is the higher of 10% of net insurance liabilities or net written premiums, with a £100,000 floor, and the FCA’s Consumer Duty would not apply. The regime is due to launch in summer 2027. There are no tax incentives, and the PRA accepts that take-up will depend on tax.

JDCC View
First flagged in Issue 17. Captives hold corporate risk for decades. A home-grown regime means UK-domiciled captives will eventually go into run-off, which creates a new source of legacy business. The point to watch in the final rules is how easily a UK captive can be closed or have its liabilities transferred.

Editorial Briefing
Pacific Life Re has agreed a $3 billion longevity reinsurance deal with American National Insurance Company. It takes on the longevity risk on $3 billion of pension risk transfer (PRT) liabilities. The deal marks the US debut of Pacific Life Re’s Savings & Retirement business, which already writes longevity business in the UK, the Netherlands and Canada.

Why It Matters
US PRT volumes have grown steadily, and insurers writing buy-outs are increasingly looking to reinsure the longevity tail rather than keep it all on their own books. Phill Beach, Executive Vice President, Savings & Retirement at Pacific Life Re, said the deal “highlights our ability to deliver tailored longevity solutions at scale.”

JDCC View
This is the third Pacific Life Re appearance in Gazette Watch in under two months, after its Japan flow deal (Issue 18) and first Hong Kong transaction (Issue 19). The reinsurer is steadily widening its map. Bringing longevity into the US, the largest PRT market, is the most significant step yet.

Sources: Artemis, 7 Oct 2026; Reinsurance News, Oct 2026.