Allstate turns down government bailout

[masuki bance]

Allstate Corp. became the second insurer today to turn down a bailout from the Treasury Department after being approved for government funding .

The property and casualty insurer said it has strong capital and liquidity positions.

The Northbrook, Ill.-based company was among six insurers approved by the Treasury to receive government aid. On Friday, financial adviser Ameriprise Financial Inc. also turned down bailout funding.

Allstate said it had $12.2 billion of equity and $23.1 billion of cash or liquid assets in its investment portfolio as of March 31. It has since bolstered its finances with a $1 billion debt offering, and its securities holdings gained more than $1.5 billion in value from the end of the first quarter through May 13, the company said.

“Given Allstate’s strong capital and liquidity positions ... we will not participate in this program,” said Chief Executive Thomas Wilson in a prepared statement today.

Last week, the federal government agreed to extend billions of bailout funds to six major life insurers, including Allstate, helping them shore up their capital positions in the wake of major investment losses....

http://www.chron.com/disp/story.mpl/headline/biz/6431034.html

How did they magically get into "strong capital and liquidity positions" so quickly?

[Deja Q]

1. Probably because an aider and abettor is no longer occupying the White House?

[Ian David]

2. They probably have bets with a hedge fund that they go bankrupt. n/t

[newinnm]

3. Who cares why..

At least they the taxpayer wont be funding a private business.


nnnm