Six US insurers awarded government bailout funds

Six of America’s largest life insurance firms are set to receive bailout funds from the US Treasury.

Prudential, Lincoln National, Allstate, Principal Financial, Hartford Financial, and Ameriprise have all been granted preliminary approval to receive funds from the Troubled Asset Relief Program (TARP).

The share price of many insurers rose between 3% and 6% following the news that approval had been granted.

A Treasury spokesperson said the companies had been approved because they applied to TARP before the 14 November deadline.

Hartford Financial, the fourth largest insurer in the US, said it expects to raise $3.4 billion from the program.

Ramani Ayer, Hartford CEO, said: “Applying for participation in the CPP was a prudent step for the Hartford, particularly given the continued economic uncertainty.

“These funds would further fortify our capital resources and provide us with additional financial flexibility during one of the most volatile market climates in our nation’s history.”