U.S. Markets closed

Moody's: Legacy long-term care blocks concerns heightened as focus on actuarial assumptions could lead to margin declines

Life Insurers' exposure to older, legacy blocks of long-term care (LTC) insurance that provides financial support for individuals who are unable to care for themselves, continues to be a top credit concern for the industry, Moody's Investors Service says in a new report. "The degree of risk depends on a specific insurer's overall concentration in LTC, the pricing and characteristics of its block, morbidity, older age mortality, the path of interest rates, and the company's past and future success in achieving LTC rate increases," according to Shachar Gonen, a Moody's vice president.