Metlife Exiting LTC

[Evan]

Met is very expensive but one of the only carriers who will consider a Insulin Dependent Diabetic.

Evan

 

[scagnt83]

What a bunch of B.S.

LOL, well only time will tell. I have said this before and you have said B.S. before.

JH & Genworth both are having "significant" rate increases.
JH has suspended group sales.
Met has discontinued group sales
Genworth has had their block of biz up for sale for years now with no buyers.
Now the new news from Met.
All three of them have admitted that they missed their estimates by "significant" amounts.

All three of them are big players and big names.
Do you really believe that they are the only ones???? You cant be serious.

All three of them have stated in their press releases that "they are not the only ones in the market".

So far time is proving me right....


Some say that the current product lines are priced appropriately. I just dont see it; I think that some carriers business models were to gain as much business as possible and sell the block of biz before claims time hit... I am not saying all of them planned this, but I would put money down on the fact that some have.

If you do the math behind the amount of claims made on a percentage basis, with the average claim amount, with the current retention rates; and then compare that to the premiums taken in and compounded at a decent interest rate; the math just does not work out in the ICs favor.

This is why carriers are/will be dropping out of the market.

 

[Franz Kafka]

You should have been an actuary the way you crunch the numbers like that. You're amazing.

And I thought your last post was filled with B.S.
You topped it with this one.

You must be a captive with a big mutual. How could a free-thinking agent believe that GNEnwrth has been trying to sell their block for years. What r u smoking?

Instead of personal attacks, why don't you share with us why you think the current LTCi business is not in trouble?

 

[medx]

Just saw that Metlife was exiting the LTC market, and not accepting new business after December 30th.

I never sold any Metlife LTC as they were to expensive. Other than Metlife agents, did anybody else sell there LTC products?

Thanks for the Information.

 

[scagnt83]

Instead of personal attacks, why don't you share with us why you think the current LTCi business is not in trouble?

judging from his responses to my posts in the past he is not capable of that.... its a shame, because I have actually learned some good facts about LTC from his other posts....
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You must be a captive with a big mutual. How could a free-thinking agent believe that GNEnwrth has been trying to sell their block for years. What r u smoking?

Nope. Indy and very free thinking, thats very clear from my postings on this forum.

And Genworth most certainly has been trying to sell their block. I have heard this from a multitude of LTC wholesalers and company insiders.... including former employees of Genworth. Its not new news at all.
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I've said it before on this forum and I'll say it again: When did the school systems stop teaching critical thinking skills? The lack of critical thinking skills on this forum, especially in regard to LTCi, is shocking.

What is shocking is your inability to logically debate a subject in a civil manner.

How old are you again????


I never once personally attacked you, only stated what was very clearly my opinion.

If I remember correctly, you removed all of your personal info from your profile and postings because of the very same thing that you are now doing...... personal attacks.... lucky for me I have thick skin and could care less

 

[Franz Kafka]

He's implying that they are stopping new sales because they are losing money. That's absurd. (That's why I poked fun at his "math".)

Does any reasonable person think the LTC insurers are losing money?
Do I need to explain how profitable the business is?

So why, in your opinion, is JH dramatically increasing their premiums?

 

[scagnt83]

Does any reasonable person think the LTC insurers are losing money?

Your kidding right?

LTC divisions of companies are looking at their blocks of biz as ticking time bombs.

I realize that LTC is pretty much your only line of business (or so it seems from your posts), and you know a lot about it I will give you that; but you are completely delusional about the future of the LTC industry
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So why, in your opinion, is JH dramatically increasing their premiums?

Well appearently they are making money hand over fist... (even though they have said they are looking at losses on old blocks of biz)... so it must be so that they can make even more loads of money....

remember, LTC is a very profitable business... thats why Met is exiting the business.... they are making too much money.... thats what I would do.... wouldnt you Franz???

 

[VolAgent]

Try thinking like a corporate executive, instead of an insurance agent, and maybe you'll understand why they are doing what they are doing and then maybe you'll understand my post.

I've never met a business owner who STOPPED selling a profitable product. So, please do explain to us why this makes sense to a corporate executive. If this is so profitable, why would you stop selling it? A business stops selling a product if it is unprofitable or soon will become so for various reasons.

Also, if it so profitable, how are they constantly getting rate increases approved?

 

[VolAgent]

Do you think that a rate increase can only be approved if an insurer is losing money? Do you know what the loss ratio is on LTCi in most states?????

They are not getting out of the LTCi business.
They are still in the LTCi business.
they've got about three-quarters of a million policyholders.
About a billion in gross revenue every year just in LTCi premium. Every company has limited resources.

It's a simple executive decision: can we make more money by selling new policies OR can we make more money by cutting our overhead expenses and focusing on managing the policies we have.

Either you are growing, or you are dying. Corporate executives know this very well. They live and die by quarterly revenue and profit numbers. Stocks get hammered every quarter that beat earnings estimates, but missed revenue numbers. MetLife is a stock company, you can try to spin this however you want, but they are not going to discontinue a profitable product line.

And yes, I realize that losing money is not the only criteria for getting a rate increase. But you want me to believe that MetLife really went to all the DOIs and said, "Look, we're only netting 20% on our LTCi line, and we need it to net 40%. We're going increase rates 12%. So, drinks on us tonight?"

Not all insurance commissioners are elected, but the rest are appointed. You don't further your political career by embarrassing your governor.

 

[maksim]

Never a Moment....

Lets be real sir.... if you had any idea of the business, you would know how price wars started by Genworth have killed the business. The majors are stuck with a ticking time bomb, with tons of policies that they wrote with no cap to the risk. Think of all those unlimited benefit plans... written 10 to 15 years ago. Think how cheap those policies were.

You would also know that Genworth was on the brink of destruction due to their LTC portfolio, and all the crap they bought from others.... GE Colony, IDS Long Term Care (ameriprise).

The only LTC I feel confident writing now is Mass Mutual, and if I can have it pre paid in 10 years for the client... always the best option.