American International Group is no longer alone as an official insurance industry symbol of economic stress. After three straight quarterly negative financial reports, The Hartford Financial received approval today to participate in the U.S. Treasury Department’s Troubled Assets Relief Program, which has approximately $110 billion left in the government’s kitty.


Hartford said in a statement it received preliminary approval for $3.4 billion, which is subject to final negotiation and approval, Reuters reported.

 
As a condition for taking part in the Treasury's Capital Purchase Program, Hartford agreed to buy Florida-based Federal Trust Corp, a small savings and loan, reports the Washington Post.

 
According to the Wall Street Journal, a Treasury spokesperson confirmed the government has also agreed to provide funds to Prudential Financial Inc., Principal Financial Group, Lincoln National Corp., Allstate Corp. and Ameriprise Financial Inc.

 
A spokesman for Prudential declined to comment. Spokespeople for Lincoln National, Principal, Allstate and Ameriprise were not reached for comment.

"Applying for participation in the CPP was a prudent step for the Hartford , particularly given the continued economic uncertainty," Chief Executive Ramani Ayer said in the Reuters report. "These funds would further fortify our capital resources and provide us with additional financial flexibility during one of the most volatile market climates in our nation's history."


Treasury spokesman Andrew Williams said in an email of the companies receiving preliminary approval: "These life insurers met the requirements for the Capital Purchase Program because of their bank holding company status and each applied for CPP capital investments by the deadline of November 14, 2008."

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