Unpacking Hurricane Ian Losses

As ALIRT prepares to digest the 9 month 2022 statutory financial filings issued late last week, we pause to consider the impact of Hurricane Ian which struck Florida with sizeable force in late September.

Lincoln National Update Following $2.6 Billion Quarterly Loss

On November 2, 2022, Lincoln National Corporation (LNC) announced a $2.6 billion GAAP1 net loss for
the third quarter 2022, which followed its annual review of reserve assumptions and deferred acquisition
costs (DAC). The loss included the following:

U.S. Life Insurers’ Bermuda Reinsurance Exposure

The U.S. Life Insurance Industry has long utilized foreign reinsurance as part of its risk and capital
management strategies. In recent years the use of Bermuda reinsurance in particular has become
increasingly common among life insurers (especially for individual annuities), raising some concerns
among industry participants.