Apr. 9--Billions in federal bailout money could soon be headed to some troubled life insurers, but it won't guarantee a healthy future -- and it's not certain that all the insurers will want the help.

A news report and a subsequent statement from the U.S. Treasury Wednesday renewed hopes that life insurers, including The Hartford, The Phoenix Cos., and Lincoln National, which all applied for funds late last year, may finally get a boost to their financial strength.

The news pumped up insurer stock prices and set off more speculation that some insurers might use money from the federal Troubled Asset Relief Program to acquire all or part of their competitors.

The Wall Street Journal reported that the Treasury has decided to expand TARP, which has so far provided aid to banks and car companies, to include the faltering life insurance industry. An official announcement is expected within the next several days, the Journal said, quoting unnamed sources.

"There are a number of life insurers who met the requirements" for TARP's Capital Purchase Program, Treasury said Wednesday. "These are among the hundreds of financial institutions in the CPP pipeline that will be reviewed and funded as appropriate on a rolling basis."

The agency wouldn't comment further, and it isn't known which companies would actually get any money.

Analysts believe the bailout funds will provide some relief to insurers and investors, but warn that it could be just a temporary fix.

"TARP funds alone cannot eliminate the capital/liquidity pressures caused by weak credit, equity market and economic conditions," and the funds haven't been a cure-all for past recipients, Andrew Kligerman, an analyst at UBS, told investors Wednesday. However, he said, "it likely will temporarily boost investor confidence."

And it did Wednesday, as the stock price of The Hartford Financial Services Group rose $1.14, or 13.5 percent, to close at $9.59 a share, its highest point since Feb. 18.

Lincoln National Corp. shot up $2.26, or nearly 33 percent, to $9.15 a share. Phoenix closed up 15 cents, or 10 percent, at $1.65 a share.

Life insurers have been reporting net losses and shrinking capital. Many are weighed down by investment losses and pressures on their variable annuity businesses, which have to make good on costly guarantees to customers. Some companies, including The Hartford and Phoenix, have suffered multiple downgrades of their financial ratings.

Given their depressed stock prices and weak markets, raising new capital is difficult and expensive for many life insurers.