Life insurance stocks rallied this morning following word from the Treasury Department that it plans to offer bailout funds to struggling companies. Shares in this industry have fallen more than 40 percent.
According to Wednesday’s Wall Street Journal, the department is expected to announce the expansion of TARP funds this week.
“The news will come as a relief to a number of iconic American companies that have suffered big losses made worse by generous promises to buyers of some investment products,” reports the Journal. “Their troubles led to a string of rating-agency downgrades that, in a vicious cycle, made it more difficult for some insurers to raise funds.”
Shares on the up include Prudential Financial, Met Life, Hartford Financial Services, Genworth Financial, and Lincoln National, according to the Journal.