Penn Treaty Reinsures New LTC Policies

NU Online News Service, Jan. 10, 9:33 a.m. – Penn Treaty American Corp., Allentown, Pa., says it has reduced its statutory capital needs by arranging for Centre Solutions (Bermuda) Ltd., Hamilton, Bermuda, to reinsure its new long-term care insurance policies.

The Centre agreement provides 50% quota share reinsurance on the first $100 million of newly issued LTC annual insurance premium. The agreement also gives Centre the option to reinsure a portion of the next $1 billion in newly issued LTC annual insurance premium with maximum quota share amounts of up to 40%.

The Pennsylvania Insurance Department has approved the agreement, Penn Treaty says.