Manulife Hopes for Another Hancock LTC Reinsurance Deal
Manulife Financial believes it has a chance to find a reinsurer for a $4 billion block of long-term care insurance business written by the company’s John Hancock unit.
Marc Costantini, Manulife’s global head of in-force insurance policy management, talked about hopes for the block today, during a conference call with securities analysts.
“We don’t talk about what’s forthcoming, but we do have interest in the block,” Costantini said.
The policies in the block are performing well, and that creates a “positive halo” for the block and the company, Costantini said.
What it means: A big new John Hancock long-term care insurance reinsurance deal could help lead to a revival in the U.S. stand-alone LTCI market, by increasing confidence in issuers that they will have some flexibility if they decide to change course.
The backdrop: John Hancock was one of the pillars of the U.S. long-term care insurance market. It was acquired by Manulife, a Toronto-based company, in 2004.
Like other LTCI issuers, Hancock made inaccurate assumptions about how LTCI policies would perform. It eventually stopped selling LTCI coverage. It continues to be a major U.S. provider of life insurance.
