May 15, 2009 (FinancialWire) — The Allstate Corp. (NYSE: ALL) has joined six other big insurers who have received preliminary approval to participate in the U.S. Treasury Department’s Capital Purchase Program.

The Hartford Financial Services Group (NYSE: HIG) said on Thursday that it has been approved for up to $3.4 billion from Treasury. Other insurers who have been approved to receive bailout money include Ameriprise Financial Inc. (NYSE: AMP), Lincoln National Corp. (NYSE: LNC), Principal Financial Group Inc. (NYSE: PFG) and Prudential Financial Inc. (NYSE: PRU).

Allstate chairman and CEO Thomas J. Wilson said, “Inclusion of insurance companies in the Capital Purchase Program is a positive and proactive step by the administration to stabilize the financial markets, and recognizes the integral role that insurance companies play in our economy.”

Treasury’s Capital Purchase Program was originally limited to banks. Only insurers who had a bank holding company unit were allowed to participate. While the easing of restrictions pleases some in the insurance industry, particularly life insurance carriers, others are crying foul.

In a conference call covered by MarketWatch, chief executives of the U.S. property-casualty insurance sector strongly opposed the move to provide government bailout funds to troubled insurers.

Liberty Mutual CEO Ted Kelly called the move “a slippery slope,” fearing that it would open the industry to increased government regulation and control.

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