Manulife Monetary believes it has an opportunity to discover a reinsurer for a $4 billion block of long-term care insurance coverage enterprise written by the corporate’s John Hancock unit.
Marc Costantini, Manulife’s world head of in-force insurance coverage coverage administration, talked about hopes for the block in the present day, throughout a convention name with securities analysts.
“We don’t speak about what’s forthcoming, however we do have curiosity within the block,” Costantini stated.
The insurance policies within the block are performing properly, and that creates a “constructive halo” for the block and the corporate, Costantini stated.
What it means: A giant new John Hancock long-term care insurance coverage reinsurance deal may assist result in a revival within the U.S. stand-alone LTCI market, by growing confidence in issuers that they could have some flexibility in the event that they determine to alter course.
The backdrop: John Hancock was one of many pillars of the U.S. long-term care insurance coverage market. It was acquired by Manulife, a Toronto-based firm, in 2004.
Like different LTCI issuers, Hancock made inaccurate assumptions about how LTCI insurance policies would carry out. It will definitely stopped promoting LTCI protection. It continues to be a significant U.S. supplier of life insurance coverage.