We recently wrote about the Treasury Department giving preliminary approval for six insurance carriers to receive TARP funding as part of the ongoing economic recovery package.
It appears that the ‘Good Hands People’ at Allstate have decided to go it alone, without government help. To be sure, Allstate is not a major player in the group benefits market but they do have a series of voluntary products that compete with AFLAC and Colonial (part of the Unum family).
Thomas Wilson, Allstate’s CEO had the following to say:
We applaud the Administration’s decision to include insurers in the U.S. Treasury’s programs. Given Allstate’s strong capital and liquidity positions, however, we will not participate in this program.
Two factors affecting their decision to decline the funds were a successful debt offering in the private market and the increase in the value of their portfolio by $1.5 billion since first applying for the program. The rebound in the market and money raised from the offering has apparently allowed them enough additional breathing room to make the TARP funds less necessary.
About the Author:
Matthew McDermott, SPHR is an experienced Employee Benefits Consultant with The Landmark Group in Rochester, NY. If you wish to reach him regarding this or any other benefits related issue, please contact him at (585) 272-1956 x206 or by email at mmcdermott <at> landmarkinsurance.net.
