Lincoln National Corporation introduced a new 1‑year participation account that links its Lincoln OptiBlend fixed indexed annuities to the Capital Group Dividend Value (CGDV) ETF. The account allows annuity holders to track the ETF’s performance while preserving the 100 % downside protection that is a hallmark of fixed indexed annuities.
The CGDV ETF carries a Morningstar Medalist Gold rating and manages more than $19 billion in assets, with some estimates reaching $26 billion as of late November 2025. The participation account credits indexed interest based on the ETF’s performance; if the ETF’s return is negative, the annuity is protected from loss but no interest is credited. This structure makes the product the first of its kind in the fixed indexed annuity market.
Lincoln’s launch aligns with its strategic shift toward capital‑efficient, spread‑based earnings. The company raised its 2026 free‑cash‑flow conversion target to 45‑60 % from 39 % in 2024, which itself had risen from 35 % in 2023. By adding a product that can generate higher spread income, Lincoln expects to improve its free‑cash‑flow conversion and overall capital efficiency.
The new offering differentiates Lincoln from peers that rely on passive index strategies. The partnership with Capital Group—an asset‑management firm with a long‑standing relationship with Lincoln—adds credibility and positions the company to attract customers seeking growth exposure with guaranteed protection. The fixed indexed annuity market is competitive, and the product’s active‑management component could broaden Lincoln’s customer base.
CEO Ellen Cooper emphasized the company’s focus on spread‑based earnings, noting that such products now comprise two‑thirds of Lincoln’s overall mix. She added that fixed annuity sequential growth reached 41 % and RILA sequential growth was 12 % in the most recent period.
Overall, the product launch represents a strategic move to broaden Lincoln’s annuity suite, enhance capital efficiency, and potentially boost revenue and free‑cash‑flow generation in the coming years.
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