Someday, the closed block of long-term care insurance (LTCI) at Unum Group Corp. could free up a lot of cash for general corporate purposes.
Executives at Unum (NYSE:UNM) talked about the possibility with securities analysts Wednesday during a conference call.
Unum stopped selling individual LTCI in 2009, and it suspended sales of group LTCI in 2012. It has been working since then to increase LTCI premiums.
The LTCI block generated $157 million in operating revenue for the quarter, down from $160 million in the fourth quarter of 2012.
The interest-adjusted loss ratio for the LTCI block fell to 89.6 percent for the year, from 90.1 percent in 2012.
Persistency dropped only slightly, to 95.5 percent, from 95.8 percent.
Policy reserves increased to $5.8 billion, from $5.3 billion.
Thomas Watjen, Unum’s president, said the company continues to make good progress with increasing LTCI prices.