Insurers receive preliminary OK for Treasury funds

LOS ANGELES (AP) — The federal government has agreed to extend billions in bailout funds to six major life insurers, helping them shore up their capital positions in the wake of major investment losses.

The Hartford Financial Services Group Inc. said Thursday that it had been notified by the Treasury Department that it was eligible for $3.4 billion from the Troubled Asset Relief Program, or TARP. Lincoln National Corp., which goes by the name Lincoln Financial Group, said it has been initially cleared for a $2.5 billion injection from TARP’s Capital Purchase Program.

Prudential Financial Inc. of Newark, N.J., said it received approval for an undisclosed amount of funds and that it is currently evaluating all options available to the company.

Allstate Corp. of Northbrook, Ill., Minneapolis-based Ameriprise Financial Inc., and Principal Financial Group Inc. of Des Moines, Iowa., also are among insurers receiving preliminary investment approval.