Many federal employees like their voluntary long-term care insurance (LTCI) coverage enough to buy more of it.
John Hancock Long-Term Care increased sales of LTCI to $23 million in the first quarter, up from $12 million in the first quarter of 2013.
Sales grew sharply even though executives at the parent of John Hancock, Manulife Financial Corp. (TSX:MFC), have declared that LTCI sales “are not targeted for growth.”
But many of the federal workers who participate in a voluntary LTCI plan insured by John Hancock buy products with options that give them a chance to protect themselves against inflation by buying additional coverage of every two years.
Inflation buy-up activity helped buoy LTCI sales in the first quarter, Manulife says.
The company discussed the performance of the LTCI line in its latest earnings release.
The company as a whole is reporting 784 million Canadian dollars in net income for the latest quarter on 14 billion Canadian dollars in revenue, up from 508 million Canadian dollars in net income on 5.8 billion Canadian dollars in revenue for the first quarter of 2013.
Company executives gave the federal LTCI coverage holders’ use of inflation-protection coverage to purchase options.
At the John Hancock Long-Term Care unit, with reports results in U.S. dollars, premiums and deposits increased to $538 million, from $535 million.