United Security Assurance Company of Pennsylvania (USA) has completed a reinsurance transaction with Alpha Re (U.S.), a Vermont-based reinsurer.
As a result of the transaction, USA has ceded its long term care and home health care insurance business issued through 2014 to Alpha Re (U.S.). USA, along with its sister company, Coventry CareLink Insurance Services, will continue to administer the reinsured business. USA's existing policyholders will not be directly affected by this transaction.
"We are quite pleased we were able to complete the coinsurance transaction," said William Neugroschel, President and CEO of United Security.
"The financial impact of the transaction will enable us to increase our statutory surplus and risk-based capital and will help us to continue to provide long term care insurance products to our agents and consumers," he said. "It has been our pleasure to work through the details of the transaction with the management of Alpha Re (U.S.), which was supportive of our business needs."
United Security, founded by insurance agent Ronald Landes in 1983, is one of the few remaining pioneers of the long term care insurance industry.
"I feel fortunate to have helped our company turn the page and move forward into its next chapter," Neugroschel said. USA booked annual premium of $32.9 million in 2015 and supports 50+ jobs between its Souderton, PA and Baltimore, MD locations.
United Security was represented in the transaction by Ren Tundermann of Baltimore-based Funk and Bolton and Steven Davis of Philadelphia-based Stradley Ronon.