A unit of CNO Financial Group increased sales of long-term care insurance in the second quarter by focusing on sales of long-term care insurance products with short benefits terms.
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The Carmel, Indiana-based company produced $6 million in long-term care insurance sales for the quarter, up from $5.6 million for the second quarter of 2015.
Total long-term care insurance premium revenue fell to $118 million, from $120 million, but the interest-adjusted benefits ratio, or ratio of benefits costs to revenue, fell to 77.9 percent, from 84.6 percent.
The long-term care insurance underwriting margin — premium revenue plus interest income, minus benefits costs — rose to $26 million, from $19 million.
Because some long-term care insurance policyholders responded to premium increases by dropping their coverage, the company was able to free up $5 million of the reserves backing its long-term care insurance policies.
The company as a whole is reporting $60 million in net income for the quarter on $1 billion in revenue, up from $47 million in net income on $959 million in revenue.