More insurers set their sights on TARP

This week, three more insurers announced their intentions to apply for to the Department of the Treasury’s Capital Purchase Program. The Phoenix Cos. Inc. of Hartford, Conn. and Protective Life Corp. of Birmingham, Ala. have both applied for bank holding-company status and have signaled their intent to buy a bank in order to qualify for the CPP, which is part of the Troubled Asset Relief Program. Protective announced its intent to acquire Bonifay (Fla.) Holding Co. Inc. and its subsidiary, the Bank of Bonifay, subject to approval for the insurer to participate in the CPP. Phoenix is currently looking for a bank to purchase, but hasn’t named any prospects yet. The Principal Financial Group Inc. of Des Moines, Iowa, also announced its application to the program, saying that it has applied for $2 billion from the Treasury in exchange for an issuance of preferred shares and warrants. The company already has a banking unit, Principal Bank, also of Des Moines.