Long term care insurance has not performed well this year for Universal American Financial Corp., Rye Brook, NY, as the company’s second quarter results show that revenue in the line is down among affiliates.
The company says that long term care affiliated revenue decreased in the quarter to $673,000 from $712,000 a year ago. A company representative during a conference call today said that, “LTC will show some volatility over time.”
The company does report profits thus far as they have $18.65 million in net income for the latest quarter on $204.9 million in revenue, up from $13.05 million in net income on $146.6 million in revenue for the second quarter of 2004.
The company noted that while its Medicare supplement business premium grew by 10%, overall profits rose only by 5% as a result of increased competition.
Richard Barasch, chairman and CEO of Universal American, remains optimistic and said that “What separates us from the Medicare supplement that our competitors are offering revolves around our agents being able to sell additional products that can complement them.”