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Analysts: insurers may reject TARP funding

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Analysts at Keefe, Bruyette & Woods told Reuters Friday that some U.S. life insurers with solid capital positions may not accept funds under the U.S. Treasury’s Troubled Assets Relief Program (TARP).

At least four U.S. insurers won approval Thursday to raise billions of dollars through the government’s bank bailout plan, Reuters reported citing information from the U.S. Treasury Department. A Treasury spokesman told the news service Hartford, Prudential, Lincoln National and Principal Financial Group secured a greenlight under the program. The Wall Street Journal also reported that Allstate Corp and Ameriprise Financial Inc had been approved too.

Analysts told Reuters U.S. life insurers Principal Financial Group, Ameriprise Financial Inc and Prudential Financial Inc may not accept funds given their capital position but that the amounts available will be “large enough to significantly improve the balance sheets of the companies involved.”