Six major insurance companies reportedly received preliminary approval Thursday from the Department of the Treasury to participate in the Troubled Asset Relief Program.
Both Hartford Financial Services Group and Lincoln Financial Group confirmed the Treasury granted preliminary approval in the amounts of $3.4 billion and $2.5 billion, respectively.
MarketWatch reports Shares of Hartford Financial Services Group and Lincoln Financial Corp. rose sharply Friday, rallying after the life insurers acknowledged that the U.S. Treasury has granted preliminary approval for government bailout funds.
Other insurance companies that were reported to have received preliminary approval for funding include Allstate Corp. of Northbrook, Ill.; Ameriprise Financial Inc. of Minneapolis; Principal Financial Group Inc. in Des Moines, Iowa; and Prudential Financial Inc. of Newark, N.J.
According to a Reuters report, the KBW SPDR Insurance ETF (KIE.P) rose 1.4 percent to $26.87 while Hartford Financial (HIG.N) surged 11 percent to $16.25, Principal Financial (PFG.N) gained 4.6 percent to $19.77, Lincoln National (LNC.N) was up 9.6 percent to $17.80 and Prudential Financial (PRU.N) added 2.4 percent to $40.33.