According to industry reports, the U.S. Treasury Department is willing to inject up to $22 billion into the life insurance industry and has given preliminary approval to six life insurers to participate in the Troubled Asset Relief Program (“TARP”). TARP is only available to life insurers with federally chartered banks, or savings-and-loan institutions. The insurers receiving preliminary approval are Allstate Corp., Ameriprise Financial Inc., Hartford Financial Services Group Inc., Lincoln National Corp., Principal Financial Group Inc., and Prudential Financial Inc.
Ameriprise has already turned down the government’s offer and, according to industry reports, Prudential is also expected to turn down TARP funds. The remaining life insurers are evaluating the offer. If any of the insurers choose to accept TARP funds, the terms of participation will be subject to final negotiations and approval.
