Legacy Long Term Care blocks represent the most pressing industry concern from risk capital and operational perspectives. In recent years, many insurers placed long-term care (“LTC”) insurance businesses in run-off due to significant earnings pressure from low interest rates, unanticipated persistency and adverse morbidity.
While there is increasing interest among insurers to seek solutions for their blocks, few reinsurers with strong credit ratings have expressed interest in acquiring legacy LTC blocks.
In 2018, Wilton Re successfully executed a reinsurance transaction for $2.7 billion of legacy comprehensive and nursing home LTC insurance policies with CNO Financial Group. Wilton Re also agreed to assume administration for the business after a transition period.
Our entrance into the LTC line of business in North American solidifies our position as the leading provider of solutions for the industry’s most complex financial and operational issues.