General Electric Co confirmed its long-term care insurance reserves are sufficient while pursuing further premium increases to mitigate losses on 300,000 policies covering in-home and nursing-home care costs.
The Boston-based conglomerate has already secured $500 million in premium hikes and is seeking an additional $1.2 billion through insurers in 30 U.S. states. This follows a $6.2 billion after-tax charge in 2018 related to underwritten policies from over a decade ago, when actuarial models underestimated claim costs.
GE reduced its 2024 reserve target to $14.5 billion after reassessing policies. As a reinsurer, it relies on 30 underwriters to request rate adjustments from regulators. The company also plans to increase high-yield investments from 2% to 8% of insurance assets by 2024.
Reserve requirements amount to $55,000 per policy, aligning with industry peers. Humana Inc allocates $77,282 per policy, while Unum Group sets aside $10,614, according to Audit Analytics.
