Penn Treaty American Corp. says it is pursuing “strategic alternatives,” including a possible sales of assets and an increase in its long term care insurance reserves.

Penn Treaty, Allentown, Pa., has hired Friedman, Billings, Ramsey & Company Inc., Arlington, Va., an asset manager and real estate investment trust, to help it review ways to increase shareholder value, the company says.

Options Penn Treaty will consider could include mergers and acquisitions, strategic partnerships or the sale of assets, the company says.

The company also is evaluating its in-force business and projected new LTC insurance business with an eye to increasing claim reserves. This could result in offsetting reductions in active life reserves, the company says.

Penn Treaty expects to complete its reevaluation during the first quarter.