Allstate Corp. has become the second insurer to turn down a Treasury bailout. The company refused funding based on its reported strong capital and liquidity positions.
On Friday, Ameriprise Financial Inc. also turned down bailout funding, according to the Associated Press. The insurers were two of six companies reportedly approved by the Treasury Department for government aid.
"We applaud the Administration's decision to include insurers in the U.S. Treasury's programs. Given Allstate's strong capital and liquidity positions, however, we will not participate in this program," said Allstate Chairman, President and CEO Thomas J. Wilson in a prepared statement.
Allstate reported Tuesday a quarterly dividend of 20 cents on each outstanding share of the corporation's coommon stock. The company also reported it had $12.2 billion in GAAP equity and $23.1 billion in cash or highly liquid assets in its investment portfolio at the end of the first quarter of 2009. According to the AP, Allstate did not disclose how much money it was approved to receive in federal aid.