According to a US Treasury official, six of the country’s big insurance companies have been granted the preliminary approval for receiving government bailout funds worth billions of dollars. The spokesman said that the six insurers to avail bailout were among numerous other financial institutions to be reviewed and appropriately funded “on a rolling basis.”

The ‘big six’ to receive the bailout funds are: Prudential, Lincoln National, Allstate, Principal Financial, Hartford Financial and Ameriprise. As per media reports, Allstate and Ameriprise had found an inclusion in the companies selected for the funding, subject to certain pre-conditions.

The spokesman informed AFP on Thursday that “these life insurers met the requirements for the Capital Purchase Program because of their bank holding company status and each applied for CPP - Capital Purchase Program - capital investments by the deadline of November 14, 2008.”

CPP was launched last year to directly infuse capital into feasible banks, with the aim of stabilizing the financial system. The Treasury has already extended $200 billion to 580 banks through the CPP, with the program’s total commitment being up to 250 billion dollars.

Talking of the usage of the funds approved, Hartford Chairman and CEO Ramani Ayer said that the capital would further strengthen the monetary resources of the insurers, thereby providing them with additional financial flexibility under the extremely volatile market conditions.