The LTCI units came up recently when the companies posted results for the fourth quarter of 2014.
Manulife says its John Hancock Long-Term Care unit reported $566 million in premiums and deposits for the fourth quarter of 2014, compared with $570 million in the fourth quarter of 2013.
Sales at the unit increased to $14 million, from $13 million.
At CNO, the Bankers Life unit is reporting $127 million in LTCI revenue for the latest quarter, compared with $134 million for the fourth quarter of 2013. Sales increased to $5.8 million, from $5.7 million. The interest-adjusted benefit ratio fell to 77.8 percent, from 80 percent. CNO noted that, with the effects of actual low interest rates included, the benefit ratio increased to 70 percent, from 65.7 percent.
Cindy Forbes, chief actuary at Manulife, said Canadian accounting rules require Manulife to update interest rate assumptions in financial statements every quarter. Because LTCI reserves already incorporate the current low rates, “I wouldn’t expect to see any particular impact from interest rates on LTC versus any of our other blocks of business,” Forbes said during a conference call the company held with securities analysts.