Prudential Financial and Ameriprise Financial have both indicated that they will decline funds that are available to them through the U.S. Treasury's TARP program.
$22 billion in TARP funds are available to six life insurers: Hartford Financial Services Group, Prudential Financial, Principal Financial Group, Lincoln National, Allstate and Ameriprise Financial.
Hatford Financial Group is in the final stages of accepting $3.4 billion in funding while Lincoln National is likely to accept $2.5 billion.
Capital market conditions have improved somewhat over the past several weeks. The improved conditions benefit all life insurers who have meaningful annuity--particularly variable annuity--businesses.
Declination of TARP funds by Prudential and Ameriprise may be seen by industry analysts as a sign of relative strength.
Source: Wall Street Journal (subscription required)
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