American Enterprise Group ups the ante in the senior market
Des Moines-based American Enterprise Group announced Thursday it will acquire Medico Insurance Company by July 1, 2012 for an undisclosed amount. While the deal is pending the approval of Medico’s policyholders and government regulators, it represents the latest investment (by carriers) in the senior market.
“This is a growth opportunity for American Enterprise,” said Michael E. Abbott, president and chief executive officer of American Enterprise. “American Enterprise is well-suited to deliver a full range of product solutions to customers as a result of our experience in this market, and with the addition of Medico Insurance Company, we will be able to more rapidly increase market penetration.”
If approved, American Enterprise’s new business in the senior market will more than double, and total business in the senior market will increase by one-third.
UHC continues to gain momentum
As follow-up to CSG Actuarial’s reporting last October, Medicare Supplement market leader UnitedHealthcare (UHC) released 4th quarter 2011 financials Thursday–adding 40,000 more lives and maintaining growth momentum.
The UHC report features Standardized and Modernized policy in-force counts of 2,935,000 as of 4th quarter 2011, a 40,000 increase over 3rd quarter 2011 and a 165,000 increase over 4th quarter 2010. The 165,000 policy count growth over the last 12 months is a 6% increase over the policy counts at 4th quarter 2010.
As indicated in the following Exhibits compiled from historical UnitedHealthcare financial reports, the growth in UnitedHealthcare’s Medicare Supplement policy in-force counts slowed during the switchover to Modernized plans in 2010, but has rebounded to pre-2010 levels. UnitedHealthcare has 2.5 times as many Medicare Supplement policies in-force as the next largest company, Mutual of Omaha.
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