Radnor-based Lincoln Financial Group has sold its broker-dealer and registered investment advisory firms to offset a third quarter 2022 $2.6 billion loss, writes Jeff Blumenthal for Philadelphia Business Journal.

Lincoln will receive a $650 million capital benefit from the sale to Phoenix-based Osaic.

“Importantly, the net capital benefit from this transaction will provide us additional capital to support our [risk-based capital] buffer of $420 million, and the opportunity to deliver overall increased financial flexibility,” said CEO Ellen Cooper.

The sale includes Lincoln’s wealth management unit, Lincoln Wealth.

About 1,450 independently contracted advisors at Lincoln Wealth oversee about $71 billion in assets under advisement and $38 billion in assets under management.

The sale also includes Lincoln Financial Advisors and Lincoln Financial Securities, broker-dealers and investment adviser firms.

Lincoln Financial is also conducting a company-wide review and implemented an expense reduction program earlier in 2024.

The company announced in February it would lay off about 5 percent of its workforce, a move designed to remove “organizational complexity” and put the insurance company on a more “efficient and agile” path, according to CFO Christopher Neczypor.

Cooper told investors last Thursday that 2024 first quarter results were a good sign for the future.

Read more about Lincoln Financial in the Philadelphia Business Journal.