Lincoln National Corp. says it is reinsuring a popular variable annuity rider with Swiss Reinsurance Company.

Swiss Re, Zurich, will cover Lincoln’s SmartSecurity Advantage lifetime guaranteed minimum withdrawal benefit rider, according to Lincoln, Philadelphia.

The arrangement will affect SmartSecurity Advantage riders sold with individual variable annuities.

The Swiss Re deal is the first third-party reinsurance agreement Lincoln has arranged in connection with the VA program, Lincoln says.

Swiss Re will provide 50% coinsurance for the lifetime VA benefits guarantees associated with up to $4.5 billion in contracts sold in 2007 and 2008, Lincoln says.

Lincoln will keep 100% of the base variable annuity contracts.

At the end of the second quarter, customers were using the GMWB rider to protect about 28% of Lincoln individual market VA account balances, Lincoln says.