OneAmerica statement regarding the Troubled Assets Relief Program:Taxpayer money has no place in the life insurance business
Recently, it was announced that several large public life insurers were approved for federal assistance under the Troubled Assets Relief Program (TARP). While it is unclear how many of these insurers will actually take taxpayer money, OneAmerica believes strongly that this is a step in the wrong direction. We believe this money will be used to help public insurers’ shareholders, not their policyholders, and will encourage excessive risk-taking in the future. We believe there are better uses of taxpayer money.
At OneAmerica we will not ask for, or take, any taxpayer money.
We don’t need it. We are strong.
- We have what may be the best performing investment portfolio in the industry. We didn’t buy the risky assets that have caused other companies trouble. Consequently, our investment losses are low and a fraction of the industry average.
- We continue to be solidly profitable through the first quarter of 2009.
- We have an extremely strong balance sheet with ample capital and outstanding liquidity. Our financial position has been constructed to withstand significant market shocks or other extreme events.
- We manage our risks to ensure we take care of our policyholders for the long term. As a mutual organization with no external shareholders, we can stay focused on our main priority-- delivering value to our customers in the form of benefits paid.
- While the rating agencies have downgraded or placed on negative outlook the financial strength ratings of more than 70 percent of large life insurance groups during the past few months, we are among a very small group of companies to have received an upgrade from a rating agency since the crisis began.
We are disappointed that others in the industry have chosen to ask for bail-out money. We think it is the wrong move. We believe that in a long-term business like ours it is important to remember why we are in business – to serve families and businesses as they address their insurance and retirement planning needs – and to manage our affairs accordingly. At OneAmerica, we never forget who we are or whom we serve.
