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December 02, 2005 at 07:00 PM
A Barbados company has agreed to reinsure Penn Treaty American Corp.’s long term care insurance policies.[@@]
Under the agreement, Imagine International Reinsurance Ltd. will on a quota-share basis reinsure 75% of new LTC insurance policies issued by Penn Treaty’s Penn Treaty Network America and American Network Insurance Companies subsidiaries.
Penn Treaty, Allentown, Pa., retains the right to recapture reinsured policies after 3 years of coverage.
The agreement supplements a separate reinsurance agreement effective June 30, under which Imagine reinsured all of Penn Treaty’s in-force LTC insurance policies issued before Jan. 1, 2002.
Imagine is the principal subsidiary of Imagine Group Holdings Ltd., Hamilton, Bermuda, an insurance holding company.
The Imagine Group is owned by Brookfield Asset Management Inc., Toronto.
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