In a recent statement, the American Insurance Association (AIA) expressed no plans at this time to seek financial assistance through the U.S. Treasury Department’s Capital Purchase Program (CPP). The Treasury is currently deliberating as to whether to include insurance companies under the CPP, which is part of the $700 billion emergency economic stabilization package approved by Congress. The primary purpose of the creation of the CPP is to inject capital into credit markets, preventing counterparty failure of such a magnitude as to pose a systemic risk to the financial system.

“Congress established the CPP under the Troubled Asset Relief Program (TARP) to purchase preferred shares in banks and other savings institutions as a means to recapitalize and strengthen their financial position,” explained Evan Greenberg, who serves as AIA chairman as well as chairman and CEO of ACE Group. “We have surveyed our Board of Directors, and the substantial majority of the insurers represented by AIA do not support the inclusion of property-casualty insurers in Treasury’s program. If made available, then they will not elect to participate.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.