Allstate announced yesterday that it won't be participating in the government's Troubled Asset Relief Program.
Last Thursday, the Treasury said that it would make funds available to Allstate, The Hartford Financial Group, Prudential Financial Inc., Principal Financial Group, Lincoln National Corp., and Ameriprise Financial Inc.
Allstate Chairman and CEO Thomas Wilson issued a statement citing the company's strong liquidity and capital positions as the reasons for its refusal.
"We applaud the Administration's decision to include insurers in the U.S. Treasury's programs," he said. "Given Allstate's strong capital and liquidity positions, however, we will not participate in this program."
The Northbrook, Ill.-based insurer, is now the second of the six companies to remove itself from consideration. Ameriprise announced last Friday that it wouldn't take the money. According to the Wall Street Journal, Prudential Financial also responded tepidly, and is expected to reject the aid.
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