CHARLOTTE, N.C._Although some insurance companies have shied away from accepting bailout money from the government, Moody's Investors Service says the insurers and their creditors would benefit from the funds.

Last month, the government said it would allow six major insurers to tap the Treasury Department's Troubled Asset Relief Program for additional capital. Half have already declined the aid.

TARP money has the potential to materially increase companies' capital reserves and give them more financial flexibility, Moody's said in a report issued Tuesday.

The credit rating agency says any additional capital would help the insurers prevent ratings downgrades and improve their ratings outlooks _ which are currently negative for most insurers.