Planning Tips and Carrier News for Advisors 

Transamerica- Exit of LTC Insurance- Q1-2021

Posted by LTCI Partners | Dec 15, 2020 9:57:08 AM

Last week, Aegon (Transamerica’s parent company) announced during their Capital Markets Day that they were making BIG changes to their overall business, including some that are impacting LTC Insurance.  While we’re disappointed to see another carrier leave this marketplace, we’re proud to say that LTCI Partners has written business with 15 different carriers in 2020.  We feel confident that our lineup of Traditional & Hybrid Life + LTC Insurance products is robust and meets advisors and consumers needs.

 

Transamerica LTC Insurance Fast Facts:

 

  • Transamerica will suspend sales of Traditional & Multi-life LTC Insurance in Q1 2021
  • Transition dates & plans are forthcoming – we’ll share ASAP
  • Multi-life LTC Insurance (enrollments & re-enrollments) will likely continue through June 2021
  • They’re committed to servicing & supporting all in-force business
  • Transamerica pays out over $2.4mm each day in claims (and over $6.35 Billion total)
  • According to LIMRA, Transamerica wrote $12mm of annualized premium in 2019 (around 3% of the market)
  • They also are exiting or suspending sales of Medicare Supplements, Fixed Indexed Annuities, Variable Annuities – they’re moving away from interest rate sensitive products
  • Their current LTC Insurance products are profitable (they have strong IRRs on their current LTC portfolio)
  • A consulting firm came in and conducted business reviews and LTC Insurance was not deemed “strategic” (LTCI was only 1% of the overall business)

 

 

 

 

 

Topics: Transamerica

Written by LTCI Partners

Leave a Comment