When it comes to accepting bailout funds, life insurers are dividing into two camps: those gobbling up taxpayers’ cash and those who may no longer need it, thanks to a partial recovery in the stock market. Those companies in the later category include Ameriprise, while Prudential, Principal Financial and Allstate are still deciding whether to accept government assistance from TARP, the program designed to assist cash-strapped banks. In the other camp, Hartford Financial and Lincoln Financial may receive $3.4 billion and $2.5 billion, respectively. They join AIG, which had been the only insurer to receive a cash infusion. That company received $180 billion to offset derivatives loses. Just as some banks are rejecting aid due to restrictions on spending and compensation, insurance companies are being included for consideration. Recent weak financial markets and higher annuity costs have hurt life insurers. ACLI president Frank Keating released a statement characterizing the extension of TARP funds to insurers as “the right step toward helping restore lending and liquidity in the marketplace.”
The case deals with a CLAT set up so that the annuity benefits term depends on the initial value of the trust assets.
NAIFA members can use the center to sign up to be grassroots contacts for legislators.
The carriers are Prudential, John Hancock and Unum Life.
Sponsored by Cavanal Hill Funds
The generation that controls 80 percent of personal finances is set to retire; thus, you need to find ways to connect to new types of clients.
Sponsored by LPL Financial
Find out how your practice can grow and thrive without sacrificing the quality, personalized service your customers are accustomed to.
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.