Capital

Life insurance companies that have bank holding company status and applied for TARP funds prior to November 14 2008 will receive $22 billion in TARP funds from the U.S. Treasury. Companies that are set to receive funds include: Hartford Financial Services Group, Prudential Financial, Principal Financial Group, Lincoln National, Allstate and Ameriprise Financial. Many life insurers--particularly those with meaningful variable annuity businesses--have been significantly impacted by the capital...

Forbes magazine publishes a relatively new section called "Forbes Woman" that is dedicated to issues affecting professional and executive women. A recent column discusses financial planning and the need to consider longevity risk when constructing a portfolio--particularly in light of recent capital market volatility . Longevity risk is especially relevant to women since their life expectancies are longer than men. In addition, many women find themselves solely responsible for their family...

Fitch Ratings cut their ratings on Hartford Financial Services Group to two steps above junk status. Analysts are concerned about Hartford's decision to pause or cancel annuity sales in Japan, Germany and the U.K. Hartford has also begun implementing major changes to its U.S. based variable annuity business. Hartford is one of the life and annuity insurers that has been particularly hard hit by the capital market risk and volatility that has been rampant during the financial crisis. Source:...

South African billionaire Johan Rupert considers the possible fallout of the financial crisis at an annual meeting for analysts following the company he controls. According to Rupert, governments are "going to have to find capital in the markets, which will crowd out the private sector, or they're going to have to tax the hell out of living consumers, or inflate their liabilities into oblivion. There are not too many other options." Rupert considers inflation and broad social unrest as possible...

The U.S. Treasury Department is expected to annouce that TARP funds will be extended to certain life insurers that have bank holding or thrift status. The potential TARP funds are seen as most beneficial for those life insurers whose capital bases have suffered most during the financial crisis. Strengthened capital bases are likely a positive for consumers of life and annuity products, while industry shareholders and executives would suffer from dilution of their ownership and increased...