Hot on Facebook

Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Big Life Insurers Will Get TARP Funds

By John Johnson, Newser Staff

Posted May 14, 2009 7:51 PM CDT

(Newser) – Now that the banks' stress tests are done, it's on to the insurance industry. The Treasury Department said today it will give TARP funds to the nation's biggest life insurers, the Washington Post reports. Hartford Financial has been given preliminary approval to receive $3.4 billion, and as-yet unspecified amounts will go to Prudential, Allstate, Ameriprise, Lincoln National, and Principal Financial Group.

This marks the first time TARP funds will go outside the banking sector. The insurance industry plays a major role in the economy, the Post notes, partly through its investments in corporate bonds and commercial real estate. By accepting the TARP funds, the insurers will have to agree to restrictions such as caps on executive pay.

[Images (1)]

[Quotes (1)]

Allstate is one of the insurers getting TARP funds. (AP Photo/LM Otero, file)

« Prev« Prev | Next »Next » Slideshow

These funds would further fortify our capital resources and provide us with additional financial flexibility during one of the most volatile market climates in our nation's history. - Ramani Ayer, Hartford chairman
and chief executive

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

US Extends Bailout to Life Insurers

Treasury throwing a lifeline to a third industry

(NEWSER) - The Treasury Department has decided to give struggling life insurance companies access to federal bailout funds, insiders tell the Wall Street Journal. The industry—which had earlier seemed largely immune to the credit crisis—has been hit hard by stock market and real estate declines, leaving some firms on the hook for big payouts they may find impossible to deliver. More»

As Life Insurers Face Losses, Next Bailout Decision Looms

Life insurers, a key cog in capital markets, seek TARP funds

(NEWSER) - Life insurance companies, an oft-overlooked yet important cog in the financial infrastructure, haven’t been immune to tumbling markets, the Wall Street Journal reports, which are eroding both their portfolios and consumer confidence. A Dow Jones life insurance index is off 59% this year and 82% from its 2007 high, leading a dozen insurers to apply to the Treasury for bailout funds. More»

Dow Off 177 on Poor Earnings

Goldman report sends life insurance down

(NEWSER) - Stocks declined today as poor earnings reports made investors bearish, the Wall Street Journal reports. Although news of the Fannie/Freddie plan to speed refinancing efforts for distressed homeowners checked midday losses, the Dow dropped 176.58 to close at 8,693.96. The Nasdaq dropped 35.84, settling at 1,580.90, and the S&P 500 fell 20.26 to close at 898.95. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website