Just days after The Hartford Financial Services Group said it would accept bailout funds, Lincoln National Corp. today announced it also will tap the government's Troubled Asset Relief Program.

Lincoln National said it will accept as much as $950 million in capital as part of the government's $700 billion program. The insurer previously had received approval to receive up to $2.5 billion from the government. Lincoln said it plans to determine the exact amount of government funds it will receive by the end of June.

The company also announced it will raise $600 million though a common stock offering, and raise $500 million through a senior debt offering.

Additionally, Lincoln said it plans to contribute about $1 billion to its primary insurance subsidiary, The Lincoln National Life Insurance Co. The remaining funds will be held at the holding company for general corporate purposes, including the repayment of short-term debt.

"Lincoln believes that participation in the CPP provides additional capital flexibility," the insurer said in a statement released on its Web site. "The company expects to repay this financing as soon as practicable, taking into consideration appropriate balance sheet strength and capital markets conditions."

Lincoln also announced today that it has signed a definitive stock purchase agreement to sell Lincoln National (UK) plc in order to shift capital to core U.S. businesses. SLF of Canada UK Limited will acquire Lincoln UK for an estimated £195 million. The transaction is expected to close on or around Sept. 30, 2009, subject to customary closing conditions.

Lincoln UK is a wholly owned subsidiary of Lincoln Financial, primarily focused on providing life and retirement income products in the UK.

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