(Source: Datamonitor)
Lincoln Financial Group has completed a comprehensive capital plan comprised of a mix of common equity, debt and preferred shares. The capital plan raised $2.1 billion in capital, including $690 million of common stock and $500 million of senior notes in the private markets.
Lincoln completed the third component of its capital plan by issuing $950 million in preferred shares pursuant to the US Treasury's capital purchase program (CPP).
According to Lincoln, consistent with the objective of the CPP, the company is now positioned to increase its investment in the US capital markets to help support economic recovery.
The company also announced that it has increased the capital base of its flagship insurance subsidiary, The Lincoln National Life Insurance Company, by contributing $1 billion to the subsidiary.
Dennis Glass, president and CEO of Lincoln Financial, said: "The successful execution of our balanced and prudent capital plan will benefit Lincoln, our policyowners, shareholders, employees and partners. We were very pleased with the strong demand we saw for our common stock and debt offerings, and appreciate that the ratings agencies have recognized the significant benefits of our capital plan.
"We are confident that our enhanced capital and financial flexibility supports our continued business growth and positions Lincoln very solidly for the future, even if external market conditions deteriorate from current levels."
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