(Bloomberg) — Mergers and acquisitions may pick up for companies that are seeking to unload blocks of long-term care insurance (LTCI), said Patrick Fels, a banker at Goldman Sachs Group Inc.
“It’s an area where it’s just ripe for M&A activity if things could just fall into place,” Fels said Monday during a panel on dealmaking at the American Council of Life Insurers’ (ACLI’s) annual conference in Chicago. While there are more companies seeking to exit long-term care insurance than to enter, more buyers are emerging, he said.
Nassau Reinsurance Group Holdings LP, which was formed this year with backing from private-equity firm Golden Gate Capital, is among firms looking to take on obligations from other insurers. Nassau announced last week that it was acquiring units from Universal American Corp. HC2 Holdings Inc., led by Philip Falcone, said in April that it agreed to buy an LTCI business from American Financial Group Inc.
See also: What does that Harbinger LTCI deal mean?