Thanks but no thanks, say US insurers
US insurance associations have rejected as unnecessary a Treasury plan to include insurers in a $US700 billion ($1.042 billion) rescue package.
The US Treasury is considering whether to extend the bailout package beyond banks to other industries, including insurance. Life insurers Hartford, Prudential and Metlife were all named by US media outlets as companies indicating they’re keen to take up the offer.
But the American Insurance Association (AIA) and National Association of Mutual Insurance Companies (NAMIC) say general insurers are typically well capitalised and don’t need the assistance.
NAMIC President Charles Chamness says his members “are not interested in participating in any type of program involving direct capital infusion from the US Treasury Department”.
AIA Chairman Evan Greenberg says AIA members won’t participate if the scheme is extended to insurers.
“They are well-capitalised and well-positioned to weather the current financial crisis without the assistance of the capital purchase program,” he said.
The US Treasury is considering whether to extend the bailout package beyond banks to other industries, including insurance. Life insurers Hartford, Prudential and Metlife were all named by US media outlets as companies indicating they’re keen to take up the offer.
But the American Insurance Association (AIA) and National Association of Mutual Insurance Companies (NAMIC) say general insurers are typically well capitalised and don’t need the assistance.
NAMIC President Charles Chamness says his members “are not interested in participating in any type of program involving direct capital infusion from the US Treasury Department”.
AIA Chairman Evan Greenberg says AIA members won’t participate if the scheme is extended to insurers.
“They are well-capitalised and well-positioned to weather the current financial crisis without the assistance of the capital purchase program,” he said.