Liberty Mutual Says No to TARP Funds
Liberty Mutual is refusing to apply for financial aid through the government’s massivefederal aid under the $700 billion Troubled Asset Relief Program (TARP). According to John Cusolito, Liberty Mutual Insurance “has no need or interest in accessing federal funds.” That combined with Liberty Mutual’s “A” rating from AM Best Co. proves the overall financial strength of America’s fifth-largest property and casualty insurance provider.
The $700 billion TARP program was initially designed to save the flailing financial industry. Some insurance companies qualified for the loan money as they were also bank holding companies or had immediate plans to acquire that specific type of financial institution in their holdings. Recently, the program qualifications changed again allowing insurance companies to apply for the federal aid. Although some are going to take advantage of it, Liberty Mutual is not.
This decision will have no effect on the Liberty Mutual insurance rates policy holders are paying.