![]() Manulife declined to comment Tuesday, but Mr. As well, the insurer has incurred sizable long-term care reserve charges since 2010, the latest worth $415-million following a triennial review of this business in 2016. Manulife has also already made some reforms to its long-term care business, such as asking regulators whether it can boost premiums three times between 20, after finding existing reserves weren't large enough to cover its growing claims. The composition of each insurer's long-term care portfolio is different, so comparing the two isn't an exact science. "Virtually the entire industry has experienced greater claims than originally anticipated," said GE Capital chief risk officer Ryan Zanin, adding that more people are making claims than expected, and that they make them for longer than anticipated. Although the company was required to reassess its insurance reserves annually, the recent thorough analysis made GE's new CEO, John Flannery, realize the company's assumptions were off-base – something that shocked analysts, prompting one to ask on a conference call whether GE's annual auditor, KPMG, should be fired. The writedown follows a major review initiated last fall, during which GE consulted with its auditor, KPMG, and insurance regulators. The charge includes an $8.9-billion increase in policy benefit reserves. ![]() unveiled a stunning $9.5-billion (U.S.) writedown on its own long-term care insurance portfolio Tuesday, admitting it had "underappreciated the risk in this book" of business. Largely for this reason, American giant General Electric Co. long-term care is often seen as the more pressing issue, in part because policy holders are living longer, healthier lives, so a sudden economic recovery won't change its fundamentals. ![]() The problems persisted for previous chief executive officer Don Guloien's entire tenure after he retired last fall, Manulife's new leader, Roy Gori, appointed a new executive to focus solely on fixing these "legacy" units. For the second time in as many months, a surprising shakeup in the American insurance market has dimmed the prospects for one of Manulife Financial Corp.'s most troublesome businesses, suggesting once again that the fixes promised by the insurer's newly minted chief executive officer will come with costs attached.ĭating back to the global financial crisis, Manulife has struggled to manage its long-term care and variable annuity divisions in the United States, both of which were acquired when the insurer bought John Hancock for $15-billion in 2003.
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