Hartford and Lincoln have now received thrift charters which makes them eligible for the bailout TARP funds. Life Insurance carriers have typically been very conservative on their investment philosophies. But due to guarantees on Annuity and Life Insurance contracts they may have over extended themselves. AXA and Pacific Life have both discontinued no lapse guarantee riders on some of their Universal Life products. Could we see this as the beginning of a number of life carriers in trouble? Only time will tell!
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WASHINGTON -(Dow Jones)- Hartford Financial Services Group (HIG) and Lincoln National Corp. (LNC) were granted thrift charters Friday, clearing a hurdle for their insurance affiliates to receive capital infusions under the Troubled Asset Relief Program
The life-insurance industry has been lobbying to receive federal rescue aid
under TARP, as insurers’ investment portfolios have been badly battered by the