What does that Harbinger LTCI deal mean?
April 23, 2015 by Allison Bell
HC2 Holdings Inc. has revived strategic hopes in the stand-alone long-term care insurance (LTCI) market by announcing plans to buy a big run-off LTCI business from American Financial Group Inc. (NYSE:AFG).
HC2, a unit of Harbinger Financial (NYSE:HRG), agreed to buy United Teacher Associates Insurance Company and Continental General Insurance Company from American Financial for $7 million up front and up to $13 million in future payments. American Financial said the deal could also bring it about $105 million in future tax benefits.
HC2 would get $800 million in LTCI reserves, $300 million in annuity and life reserves, and responsibility for 58,000 LTCI insureds.