As life insurers engage in discussion with the Treasury Department about participating in the federal Troubled Asset Relief Program, another property-casualty association has publicly declared that they want no part of it.
The National Association of Mutual Insurance Companies on Wednesday sought to assure policyholders that the p-c industry remains on solid financial footing and that NAMIC does not support allowing p-c insurers to become eligible for federal bailout dollars.
"As an industry, property-casualty insurance companies, particularly the nation's mutual insurance companies, are well capitalized and have adequate reserves to pay claims," said Charles Chamness, president and chief executive officer of NAMIC.
NAMIC's policy, which was approved Wednesday by its board of directors, stated it "is to oppose the expansion of Treasury's Capital Purchase Program to include the property-casualty insurance industry," he added.
Mr. Chamness referenced the efforts and discussion by other companies seeking to engage in the federal bailout, and sought to emphasize the distinction between those seeking to access federal funds and those that aren't.
"While some of the nation's large life insurance companies are actively seeking to be included in the Treasury program, property-casualty insurers are well funded," he said. "Our members are not interested in participating in any type of program involving direct capital infusion from the U.S. Treasury Department, and we are working with our members to promote the understanding of and commitment to mutuality."
NAMIC's statement is the latest in a growing chorus from the p-c industry voicing opposition to inclusion in the bailout plan. In the past few days, the American Insurance Association and the Travelers Companies Inc. have publicly stated that they do not intend to seek eligibility for the federal bailout.
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