P&C industry turns back on government rescue package

Companies say they have more than enough capital to weather the current financial market crisis without federal assistance

Trade groups representing the US property/casualty industry say they do not need and will not participate in the US government’s $700bn emergency economic stabilisation package. Both the American Insurance Association (AIA) and the Property Casualty Insurers Association of America (PCI) came out against participation in the US Treasury Department’s Capital Purchase Program (CPP) which was created to inject capital into credit markets and to prevent counterparty failure with potential to pose a systemic risk to the financial system.