OTS OKs Hartford, Lincoln holding company bids

OTS OKs Hartford, Lincoln holding company bids | Business Insurance News, Analysis & Articles: "WASHINGTON (Reuters)—The U.S. Office of Thrift Supervision said on Friday that it approved applications from Hartford Financial Services Group Inc. and Lincoln National Corp. to become bank holding companies, an important step toward these companies obtaining federal cash.

Hartford, a large life and property insurer that has been among the hardest hit by investment losses, and Lincoln, one of the United States' largest life insurers, have applied to take part in the U.S. Treasury Department's $250 billion capital injection program.

The program is designed for banks, but insurers with a federally regulated unit are eligible to apply.

Some life insurers, including the largest U.S. life insurer, MetLife, and No. 2 Prudential Financial Inc., have federally regulated units. Others, including Hartford, Lincoln and about half a dozen more, are buying small banks in order to comply with the regulation.

Hartford, which posted a record $2.6 billion loss in the third quarter on investment losses, has said it could be eligible for up to $3.4 billion if approved for the federal program."