Insurer Pearl planning London flotation-FT

LONDON, April 8 (Reuters) - UK insurer Pearl is close to a restructuring that is expected to see it float on the London Stock Exchange with a market capitalisation of about 2 billion pounds ($3 billion), the Financial Times reported on Wednesday.

The paper said Pearl was close to raising about 500 million pounds from new institutional investors to recapitalise its parent company, the paper cited people familiar with the situation as saying.

It said Pearl was also in advanced talks with its 17 lending banks, led by Lloyds Banking Group (LLOY.L), on an exchange of debt for new debt, equity or another instrument to reduce its 3 billion pound debt burden.

Last year, Pearl acquired rival Resolution for about 5 billion pounds to create one of Britain's largest life insurers.

The FT said Pearl planned to list on the LSE later this year with the aim of using its shares to take over other quoted life insurers whose values have fallen sharply. (Reporting by Tim Castle; Editing by Anshuman Daga)