NU Online News Service, Oct. 26, 11:46 a.m. – Penn Treaty American Corp., Allentown, Pa., a struggling company that helped create the modern long-term care insurance market, says it has raised $5 million by making arrangements to sell a block of individual disability income insurance policies to Assurity Life Insurance Company, Lincoln, Neb.
Penn Treaty plans to use a reinsurance arrangement to carry out the sale, the company says.
Assurity is a subsidiary of Woodmen Accident and Life Company, a unit of the Lincoln Insurance Group. It sells individual disability, life and annuity products.
Penn Treaty is also in negotiations to sell its New York insurance subsidiary, its Medicare supplement policies, and other non-core businesses, the company says.