Insurers line up for bailout money

Calcutta News.Net
Monday 17th November, 2008

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Life insurers in the US are joining the line for US government-backed funds.

The insurers, needing to rebuild capital after being drained by investment losses, are hoping to borrow money through the government's $700 billion financial rescue program.

Insurers have claimed they have little excess capital but large exposures to the variable annuity equity market.

Life insurers have been battered by large investment losses, and funds set aside to cover costs for variable annuities, a popular retirement product, have been eroded in the stock market decline.

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