Wall Street is skeptical of companies that have any long-term financial commitments right now, and, clearly, stand-alone long-term care insurance (LTCI) has investment flu – or, perhaps, investment leprosy.
Being a hacker or a sea pirate might have a little bit of wicked glamor. Saying that your company has a large legacy block of LTCI business has no glamor whatsoever.
Investors view large legacy block of LTCI business the way…home buyers would have viewed a large, smelly, pest-infested brownstone rowhouse in Brooklyn’s Park Slope neighborhood in 1990.
Many fine, upstanding people were still fleeing Brooklyn at that point. But real investors who had the cash, foresight and patience to buy a black hole brownstone and fix it up were richly rewarded for the gambles they made.