It would sell its UK subsidiary to Sun Life Financial of Canada for $319 million.
Lincoln Financial would take federal bailout money and bid stock and debt to raise $2 billion to shore up its insurance unit and repay older debt. The insurer also said that it would sell its UK subsidiary to Sun Life Financial of Canada for 195 million pounds ($319 million)-reported Juan Lagorio in Reuters.
Lincoln also plans to sell $600 million of common stock and up to $500 million of senior debt. The company’s shares are down 11% this year.
As per the TARP funds, the government declared six insurers, including Lincoln, eligible for bailout funds under the Troubled Asset Relief Program. Lincoln would take $950 million by selling preferred stock to the Treasury. Hartford Financial Services Group (HIG.N) is taking up to $3.4 billion.