PTNA

[retread]

Recently one of my FMOs pitched PTNA to me. I was impressed with the QuickPass pre-screening tool, and asked for an appointment contract.

Then I Googled PTNA... This is a summary of what I found today:

1) Recent stock price about $5/sh ; competitors doing well (AFLAC ~ $67, AON ~$47, UNUM ~$25, etc.
2) Performance poor... YTD -24%, 52wks -13%, 3yrs -40%, 5 yrs -30%
3) Barely able to maintain seat on NYSE
4) Studying sale or merger since Dec ‘07
5) Re-stated 2005 and 2006 earnings recently
6) AM Best downgraded from B to B- in Feb ‘08
7) Suspended from sales nationwide in 2001, Florida last year (’07)
8) Prohibited from Kansas and several other states due to financials

I would not sell this company to any of my clients. Long term insurance presupposes long term viability, hence I placed the papers in my "round file".

Anyone have comments?

 

[The New Guy]

Based on your homework, I'd say a wise decision.

I would take this a step further, and ask your FMO for their rational in suggesting this company.

I would guess overrides, and not with your best interest mind.

 

[policy doctor]

They have always been known for taking hard to place cases. So if you have clients who were turned down by the major co's, call PTNA and talk to their underwriters. Just might be able to save that case.

Unfortunately, because of their liberal underwriting, their rates have jumped 75% over 3 years in many parts of the country. But in many cases, to replace with another carrier at similar benefits with an older client their premium will be higher with the new co than the old.

I've had this happen to me on my block of business....many I can't move elsewhere.

But they do pay claims and they handle it well.

 

[retread]

They have always been known for taking hard to place cases. So if you have clients who were turned down by the major co's, call PTNA and talk to their underwriters. Just might be able to save that case.

Unfortunately, because of their liberal underwriting, their rates have jumped 75% over 3 years in many parts of the country. But in many cases, to replace with another carrier at similar benefits with an older client their premium will be higher with the new co than the old.

I've had this happen to me on my block of business....many I can't move elsewhere.

But they do pay claims and they handle it well.

Yeah, I've heard this, too. But my question is: How long can they keep this up? Long term care presupposes long term viability. It doesn't look good down the road more than a few blocks for PTNA in my view.

I don't want to sell a pig in a poke to my clients.