Heads Of Insurance Cos Criticize Use Of TARP Funds

Chief executives of the U.S. property-casualty insurance sector rejected proposals for the industry to receive federal bailout funds, a stark contrast to lobbying efforts by life insurance carriers to obtain access.

Liberty Mutual Chairman and Chief Executive Ted Kelly said receiving funds from the Troubled Asset Relief Program is a slippery slope that could potentially lead to strict government regulation and control.

Kelly spoke Friday in Washington at a conference hosted by a trade group, the Independent Insurance Brokers and Agents of America. Other chief executives on the conference panel included Mike McGavick of XL Capital Ltd.(XL), Glenn Renwick of Progressive Corp. (PGR) and Robert Restrepo of State Auto Financial Corp. (STFC).

While it's understandable that life insurance providers would want access to TARP funds, Kelly said, government bailouts of companies don't coincide with capitalist market philosophy. "Capitalism without failure is like religion without sin, it doesn't work," Kelly said, drawing laughs from the audience...

WSJ: Heads Of Insurance Cos Criticize Use Of TARP Funds