Lincoln National To Accept Government Funds

PHILADELPHIA (AP) — Insurer Lincoln National Corp. said Monday it will raise more than $2 billion through stock and debt offerings, as well as tapping the government's Troubled Asset Relief Program.

The company, which markets itself under the name Lincoln Financial Group, said it will accept as much as $950 million in capital as part of the government's $700 billion program, which was launched last fall to help unclog the stagnant credit markets.

It was not until last month that the government said it would allow Lincoln and five other major insurers to tap the program for additional capital. The other insurers included Hartford Financial Services Group Inc., Allstate Corp., Prudential Financial Inc., Ameriprise Financial Inc. and Principal Financial Group Inc.

Lincoln had received preliminary approval to receive up to $2.5 billion from the government. It said it plans to determine the exact amount of government funds it will receive by the end of June.

Aside from the government funds, Lincoln said it will raise $600 million though a common stock offering. Underwriters have a 30-day option to purchase up to an additional $90 million in stock.