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 regulatory burden in areas such as executive compensation.
Possible TARP fund recipients include Hartford Financial Services Group, Lincoln National, Genworth Financial, Prudential and MetLife, Principal Financial Group and the Phoenix Companies.
Source: Wall Street Journal
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