LTCi Increases/Discontinuations

[buckistater]

Do any of you guys have a short list off the top of your head of LTCi carriers who have had significant increases or discontinued their products completely?

 

[UrAgenius]

Let's try that again...
Please add to the list folks!
RAISED RATES ON EXISTING POLICYHOLDERS:
Allianz(1/1/10)
[FONT='Arial','sans-serif']Banker's Life[/FONT]
[FONT='Arial','sans-serif']Calpers [/FONT]
[FONT='Arial','sans-serif']CNA[/FONT][FONT='Arial','sans-serif'] - Out of LTCi Business [/FONT][FONT='Arial','sans-serif']
Conseco [/FONT]
[FONT='Arial','sans-serif']Continental General
Equitable Life[/FONT]
[FONT='Arial','sans-serif']Genworth[/FONT][FONT='Arial','sans-serif']
John Hancock (on the Fortis product line that they took over)[/FONT]
Knights of Columbus
Medamerica Ins. Co.
[FONT='Arial','sans-serif']Mutual of Omaha
Penn Treaty [/FONT][FONT='Arial','sans-serif']- Out of LTC Business[/FONT]
Physicians Mutual Ins. Co.
[FONT='Arial','sans-serif']Prudential[/FONT][FONT='Arial','sans-serif'] - just filed for rate increase [/FONT][FONT='Arial','sans-serif']
Provident Life and Accident[/FONT][FONT='Arial','sans-serif'] - Out of LTC Business
[/FONT][FONT='Arial','sans-serif']
Transamerica[/FONT]
Unum
[FONT='Arial','sans-serif']National States Insurance Company ( I was informed by an LTCi agent that National did indeed raise their rates in Florida. A National States Insurance Company representative told me over the phone that they had not raised rates anywhere.) Here's their number: (314) 878-0101[/FONT]
[FONT='Arial','sans-serif']OUT OF THE LTC BUSINESS:[/FONT]
Metlife
Guardian
Transamerica
[FONT='Arial','sans-serif']Travelers[/FONT]
[FONT='Arial','sans-serif']CNA[/FONT]
[FONT='Arial','sans-serif']UNUM - out of Individual LTCi still has Group LTCi[/FONT]

 

[CALTCAgent]

Is it just me, or is that hard to read?

 

[yankee466]

Is it just me, or is that hard to read?

With your 3D glasses on, it comes through perfectly.

 

[clearlight]

Will Genworth's departure from various lines of business help them survive in LTC?

 

[Arthur Rudnick]

Genworth sells Medicare supplement to strengthen remaining business​

A Richmond, Va.-based insurance holding company announced its agreement to sell for $290 million its Medicare supplement business and related blocks of in-force business.
Genworth Financial agreed to sell its Medicare business to Aetna, based in Hartford, Conn., in a transaction expected to close in this year’s fourth quarter, subject to customary closing conditions and adjustments, and regulatory approvals.
Genworth said it anticipates the transaction to result in a total capital available for redeployment to be about $240 million. The company said it will record an after-tax gain of about $35 million related to the sale.
The transaction follows Genworth’s strategy to continue to optimize its business mix to focus on its core leadership lines and strengths, and to create long-term shareholder value, according to Tom Topinka, a Genworth spokesman.
“As part of Genworth’s specialist business strategy, it is focusing on its leadership lines: life insurance, annuities, long term care insurance, wealth management, and mortgage insurance,” Topinka told IFA. “While the Medicare Supplement business is a sound platform, the sale allows Genworth to focus on markets where it has the strongest value propositions.”
Existing Medicare supplement policies will remain in effect following the transaction, and policyholders will continue to have access to the full benefits of their policies, Genworth reported.
Aetna expects to retain all employees of the acquired product lines, according to Cynthia Michener, an Aetna spokeswoman. She said the company also expects to maintain the brand names for the products during the integration.
The transaction includes the sale of Continental Life Insurance Co. (CLI) and its subsidiary, American Continental Insurance Co., both based in Brentwood, Tenn. It also includes reinsurance agreements between some Genworth life insurance subsidiaries and Aetna to transfer the subsidiaries’ Medicare supplement in-force business.

 

[clearlight]

Arthur R, yes... they appear to be burning the furniture for lack of coal. That may keep them warm but will it serve long-term (got it: Long Term :-)

I see three explanations (which means I'm missing #4 etc)...

1) They're preparing to be sold
2) They will need even more rate increases because they're running out of furniture (relates to #1)
3) They've done the absolutely best, most perfect, and final "optimization."

Might a mutual company (!) buy them for the +quantifiable+ opportunity for triage Vs retention with higher rates?

 

[Mr_Ed]

Arthur R, yes... they appear to be burning the furniture for lack of coal. That may keep them warm but will it serve long-term (got it: Long Term :-)

I see three explanations (which means I'm missing #4 etc)...

1) They're preparing to be sold
2) They will need even more rate increases because they're running out of furniture (relates to #1)
3) They've done the absolutely best, most perfect, and final "optimization."

Might a mutual company (!) buy them for the +quantifiable+ opportunity for triage Vs retention with higher rates?

What a bunch of bullsh*t.

 

[Arthur Rudnick]

Clearlight,
Just curious..........
Do you have any idea what you're talking about?

 

[Mr_Ed]

Arthur R, yes... they appear to be burning the furniture for lack of coal. That may keep them warm but will it serve long-term (got it: Long Term :-)

I see three explanations (which means I'm missing #4 etc)...

1) They're preparing to be sold
2) They will need even more rate increases because they're running out of furniture (relates to #1)
3) They've done the absolutely best, most perfect, and final "optimization."

Might a mutual company (!) buy them for the +quantifiable+ opportunity for triage Vs retention with higher rates?

Considering Genw. Life Ins. Co. has well over $16 BILLION dollars in LTC insurance reserves, I don't think the $35 million dollar gain from this sale is "burning furniture for lack of coal."

Let's see..... $35 million is about two-tenths of 1% of their LTCi reserves.

In other words, that $35 million is about .22% of the amount of money they have in LTCi reserves.

If the $16 Billion was the size of one's head, the $35 million would be smaller than an eyelash.

Assuming they make only 4% per year on their LTCi reserves (the actual return is probably much higher), they would make $35 million in interest on the reserves EVERY 20 days.

Statements like this:

"...they appear to be burning the furniture for lack of coal..."

are ignorant and unprofessional and certainly border on unethical and unfair sales practices.


nadm