The Next Big Bailout Decision: Insurers

The Next Big Bailout Decision: Insurers

By Ahmed Al-Salem

It seems everyone is asking for money from the government these days. Some industries get their wish, others. Many life insurers are awaiting applications for aid from the government's $700 billion Troubled Asset Relief Program, and the industry is expecting an answer to its request for a bank-style bailout in the coming weeks. The government so far hasn't said whether insurers will be eligible for the program. “Life insurers have taken a beating in recent weeks. The Dow Jones Wilshire U.S. Life Insurance Index has fallen 59% since the beginning of the year, leaving it down 82% since its May 2007 all-time high. The Dow Jones Industrial Average has lost 21% year to date, off 51% since its October 2007 record.” The hardest hit companies are century old names like Hartford, MetLife and Allianz. It will be intresting to see what the government will decide to do with the request and whether or not the insurance companies can rebound.
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