They announced plans to institute $1.7 billion in premium increases for its policyholders over the next several years. State regulators have already approved $500 million of the increases, which haven’t yet been implemented. They have approximately 274,000 long-term care policies and expect to pay out over $30 billion in claims over the next two decades. Startlingly, to increase their investment return, they revealed their intention to invest more heavily in junk bonds, private equity and other high-yield investments. Also, they continue to explore the potential sale of their insurance business portfolio. As to the rate increase, 24% of their long-term care policies are paid up, which means they are immune from rate increases. The latest and most shocking development is their March 8 announcement that they are “temporarily” suspending LTC sales through brokerage general agencies in all states. This does not impact existing customers and their benefits, but is a bad sign. This company at one time was the gold standard in the long-term care insurance marketplace and had a 25% market share, proving once again that nothing is forever and even the mighty can fall

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