Hannover Life Reassurance Company of America (Hannover Re U.S), a subsidiary of global reinsurer Hannover Re Group, has entered into a reinsurance agreement with OneAmerica related to the Asset Care long-term care (LTC) business written by its subsidiary, The State Life Insurance Company.
Asset Care refers to a combination of whole life insurance products, featuring guaranteed death benefits with cash values and the provision of LTC benefits through acceleration of the death benefit.
It also provides an optional extension of LTC benefits, offering up to lifetime coverage with guaranteed premiums.
LIMRA Secure Retirement Institute recently ranked Asset Care as second among all individual life and LTC-extension products, and its data revealed that combination products now represent over 80% of the overall individual LTC market.
The reinsurance transaction between Hannover Re U.S and OneAmerica will become retroactively effective from January 1, 2018, and will allow the parties to share all actuarial risk inherent in the OneAmerica product suite of Asset Care products.
The agreement covers all new Asset Care business written in 2018, and includes one of the industry’s broadest selections of asset-based products.
Peter Schaefer, President and Chief Executive Officer (CEO) of Hannover Re U.S, said: “Asset Care has been at the forefront of the combination LTC product market for over 25 years. OneAmerica’s financial strength, along with its expertise in this market, has allowed it to build a strong experience base, which gives us confidence in working with them.”
Dennis Martin, President of Individual Life and Financial Services at OneAmerica, also commented: “We have seen tremendous growth with our Asset Care solutions. As more people become aware of the significant benefits and guarantees offered by these products, we believe this growth will continue.
“We’re committed to offering financial advisors and their clients industry-leading asset-based LTC products, using both whole life insurance and annuities, for many years to come.”
He added: “Hannover Re brings expertise in the reinsurance market and a desire to be on the leading edge of innovative product solutions, making them an ideal fit and a perfect complement to our strategy, products and experience.”