BlackRock is in the running for another federal contract. The New York City-based asset manager -- which assisted the government in assessing securities at AIG, Bear Stearns, Fannie Mae and Freddie Mac, and is also one of the managers in the Private Public Investment Program -- is on a short list of candidates for a National Association of Insurance Commissioners contract to analyze risk and valuate loss for insurers' investments, the Wall Street Journal reported.

Traditionally, the NAIC work has been given to the major ratings firms, but a group of government regulators will cast a vote next week to decide if the raters should continue, according to the report. By switching away from rating agencies, regulators are looking for a more reliable assessment process.

If approved, BlackRock will be responsible for analyzing risk in bonds backed by residential mortgages. The results would provide regulators with data for insurers' 2009 financial statements, and the the contract would expire on December 31.

Insurance regulators have also held talks with PIMCO's advisory branch and D.C. based firm Promontory Financial Group. 

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