Lincoln National Corp. said Monday it would 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 U.S.

Lincoln National, which will retain the Lincoln National and Lincoln Financial Group names, would become be the country’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.