Imagine International Reinsurance Ltd. is getting closer to agreeing to reinsure new long term care insurance business written by Penn Treaty American Corp. through a 75% quota share arrangement, Penn Treaty says.[@@]

Imagine, Dublin, agreed in July to reinsure Penn Treaty’s in-force LTC business.

Imagine also has been looking into the possibility of reinsuring Penn Treaty LTC business sold on and after Oct. 1.

Imagine now has completed its due diligence process, and its underwriting committee has approved the 75% quota share reinsurance arrangement, Penn Treaty says.

Imagine and Penn Treaty still are completing “final legal and regulatory review and the negotiation and execution of definitive documentation,” Penn Treaty says.