Six insurers have been given preliminary approval to participate in the Capital Purchase Program (CPP), a section of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP).
The companies — Allstate Corp., Ameriprise Financial Inc., Hartford Financial Services Group Inc., Lincoln National Corp., Principal Financial Group, and Prudential Financial Inc. — had all applied for bank holding status by Nov. 14, 2008, making them eligible to receive funding under a facet of TARP that so far has allocated $218 billion to 532 banks, reports Forbes.com.
Each company will now decide whether to participate in the CPP; insurers that have been granted approval may not necessarily accept.