Allstate Corp. said Tuesday that it will not participate in the Treasury Department's Troubled Asset Relief Program, becoming the second life insurer to back away from aid days after six were given preliminary approval.
Ameriprise Financial Group Inc., one of the insurers to win preliminary approval, said Friday that it would not take the money.
Thomas J. Wilson, Allstate's chairman and chief executive, cited his company's strong liquidity and capital positions.
In the fall, many life insurers became bank or thrift holding companies to qualify for Tarp funding, but by the time the Treasury delivered preliminary approvals, market conditions had changed, making it easier to raise capital.
Allstate said Tuesday that its position has improved as a result of its suspended share repurchase program, reduced operating costs and investment risk mitigation programs.
The company also said it would maintain its quarterly dividend of 20 cents a share. It had cut its dividend in half in February to save $450 million a year.