RADNOR, Pa., Sept. 13, 2013 /PRNewswire/ -- On Wednesday, September 11, 2013, the New York Department of Financial Services ("NYDFS") notified the Commissioners of the National Association of Insurance Commissioners ("NAIC") that New York would no longer implement the previously-agreed to NAIC solution that addresses the reserving for universal life policies with secondary guarantees ("GUL"). Media coverage of NYDFS's letter cited estimates of potential increases to GUL reserves for companies that conduct business in the State of New York.
With Lincoln Financial Group's total adjusted statutory capital of $7.5 billion and an estimated risk-based capital ratio of 485 percent as of June 30, we would not expect NYDFS's new approach to impact our capital plan that we have previously disclosed in our public comments. Lincoln Financial completed $100 million of share repurchases in the third quarter and, subject to market conditions, is planning to continue repurchases in the fourth quarter.
The impact of any of NYDFS's proposed changes would be limited to our New York subsidiary, Lincoln Life & Annuity Company of New York ("LNY"), which has an estimated 585 percent risk-based capital ratio as of June 30. This is a strong capital base to absorb a significant reserve increase. In addition, we discontinued the sale of GUL policies in New York earlier in the year. Finally, based on our understanding of communications between NYDFS and the Life Insurance Council of New York (our New York industry association), we anticipate that any impact of potential increased reserves for affected companies would be subject to a phase-in period over a number of years.
Lincoln Financial will continue to work with the NYDFS to resolve their concerns in this area.