Saving You Money For Life

There have been a number of articles appearing the past week in the media indicating that the Treasury Department may release TARP Funds to certain life insurance companies.

Here’s my take on it for what it’s worth: Although so far AIG is the only insurer to receive a Federal bailout to prevent insolvency, several life insurers are under consideration to receive TARP funds as a loan.  Unlike the AIG situation, this temporary boost to working capital could be a very positive development to allow insurers to maintain their credit ratings, key financial ratios, and the ability to write new life insurance while still paying claims.  Whether or not an insurer qualifies for or receives a TARP loan is not necessarily an indication of financial strength or weakness.

Tags: AccuQuote

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