Property/casualty insurers should not be included in the government’s plan to invest in banks and other institutions hit by the financial crisis, the American Insurance Assn. said Monday.
The Capital Purchase Program, which was included as part of the $700 billion bailout program signed into law earlier this month, was established to inject government capital into banks and other financial firms facing liquidity problems.
In a statement, Evan Greenberg, AIA chairman and chairman and chief executive officer of Bermuda-based ACE Ltd., said the majority of AIA members do not support the inclusion of P/C insurers in the program and that if it were made available to them they would not participate in the program.