Insurers seeking banks for bailout funds

WASHINGTON, Nov. 21 (UPI) -- Insurance companies buying banks to qualify for a share of the $700 billion U.S. bailout program have no guarantee the strategy will work, the Treasury said.

Neel Kashkari, interim assistant secretary of the Treasury for Financial Stability, said last week he didn't want companies to play their way into the system, but major life insurance companies have said they were looking banks to buy, anyway, The Washington Post reported Friday.

Aegon, parent of insurer Transamerica, said in a Web site posting it was "prudent and possibly advantageous to explore the terms and conditions under which financial support may be available," the Post reported.

Hartford Financial Services Group is also exploring purchases that could help it qualify for assistance. "We are taking these actions as a strong and well-capitalized financial institution looking for maximum flexibility and stability," said Chief Executive Officer Ramani Ayer.

The Post said Lincoln Financial Group, the Phoenix Cos. and Genworth Financial are also attempting to change their status to savings and loan holding companies.