Philadelphia, Pa.-based Lincoln Financial Group has announced a capital plan to raise $2 billion, with $1 billion set to be dedicated to its insurance subsidiary.

Lincoln announced June 15 that it will offer $600 million of its common shares, giving underwriters a 30-day option to purchase up to 15% of the offered amount of common shares from the company. Its plan also includes raising up to $500 million in senior debt and targeting about $950 million in preferred stock, issued through the U.S. Treasury‘s Capital Purchase Program.

In April, Lincoln announced that it was eligible to receive $2.5 billion through CPP, a voluntary program through the Treasury’s Troubled Asset Relief Program.

With the $2 billion it hopes to raise, Lincoln said $1 billion will go to its principal insurance subsidy, The Lincoln National Life Insurance Co., and the remaining $1 billion will be held at the holding company level for “general corporate purposes,” which the company said included repayment of short-term debt and investment in the company’s core businesses.

These latest actions supplement dividend reductions, cost cuts and other actions previously announced, Lincoln said, geared toward strengthening the company’s capital and liquidity, and solidify its capital positions at both the subsidiary and holding company levels.

In a statement, the company said it believes its participation in the CPP “provides additional capital flexibility” and it “expects to repay this financing as soon as practicable, taking into consideration appropriate balance sheet strength and capital markets conditions.”

By the end of June, Lincoln said its final level of participation in the program is expected to be announced. Any participation in the CPP would be subject to final approval and finalization of terms and conditions.