ROCHESTER, N.Y., April 14 /PRNewswire/ -- Long-term care insurer MedAmerica announces a $70 million acquisition of the long-term care insurance business of Combined Insurance Company of America, part of the ACE Group of Companies. Combined Insurance is a 90-year-old leading provider of supplemental accident, health and life insurance products. ACE is one of the world's largest providers of commercial property and casualty insurance and reinsurance. Upon completion, the acquired block of 11,000 contracts is expected to generate $12 million in annualized written premium and support the continued growth of MedAmerica's operations. The transaction was effective Dec. 31, 2008.
MedAmerica was selected because of its strong service capacity and exclusive focus on long-term care insurance. "MedAmerica has a strong track record and is viewed as a leader in the long-term care insurance industry," comments Doug Wendt, president and chief executive officer, Combined Insurance. "The MedAmerica brand will serve our former long-term care policyholders well."
"Having a highly rated insurer like ACE select us is a confirmation of MedAmerica's solid position in the LTC marketplace for the last 20 years," comments Bill Naylon, vice president of finance and capital markets at MedAmerica. "ACE recognizes that servicing long-term care insurance requires dedicated operations and specialized risk management expertise."
"Combined Insurance and ACE entrust us with the future of their insureds," says Chadwick Roy, director of capital markets at MedAmerica. "They value the security MedAmerica offers. We're not an insurance supermarket. MedAmerica underwrites, insures and administers one product, and one product only -- long-term care insurance. It's our depth of expertise that is an attractive added value."
MedAmerica maintains a strong market position with its Simplicity cash long-term care insurance policy leading the industry with the highest independent rating for five consecutive years (SellingLTC.com). MedAmerica Insurance Company (Home Office: Pittsburgh, PA), MedAmerica Insurance Company of Florida (Home Office: Winter Park, FL), and MedAmerica Insurance Company of New York (Home Office: Rochester, NY) are the long-term care insurance subsidiaries of Lifetime Healthcare, Inc., a $5 billion not-for-profit company that finances and delivers health care to more than 2 million people.
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