Lincoln National Corp. will acquire rival Jefferson-Pilot Corp. for about $7.5 billion in cash and stock, as the two century-old companies create what executives said would be one of the largest publicly traded life insurance companies in the United States.

The buyer, which will retain the Lincoln National and Lincoln Financial Group names, will be the nation's largest seller of universal life insurance products and a leader in group disability insurance and retirement plan assets, the companies said.

The deal is expected to be completed in the first quarter of 2006 after shareholder and regulatory approval

Executives predicted annual cost savings of about $180 million after the two companies are combined. Lincoln National has annual sales of $5.4 billion, while Jefferson-Pilot has annual sales of $4.1 billion.

The deal would combine Lincoln's strengths in life and annuities products with Jefferson-Pilot's sizable presence in fixed and variable universal life and fixed annuities, including equity-indexed annuities and other insurance, the companies said.

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