Life Insurers Seek Money in the Banks

Genworth didn't say how much TARP money it expects to qualify for.

Reuters reported Tuesday that Aegon was also seeking thrift holding company status, to qualify for more than $1 billion in government money. The Dutch company, which holds Transamerica, was said to be considering the purchase of troubled Suburban Federal Savings of Crofton, Md., which had $354 million in total assets as of Sept. 30.

Aegon reported a third-quarter net loss of 329 million euros ($425 million when announced), from impairments related to Lehman Brothers and Washington Mutual, as well as asset-backed securities.

Like InterBank, Suburban Federal has posted five straight quarterly losses, with problem loans rising to even more alarming levels. The institution's ratio of nonperforming assets to total assets was 13.71%. According to its third quarter call report, which is still subject to revision, Suburban Federal was considered critically undercapitalized per regulatory guidelines, since its tangible equity ratio was just 1.33%.