This week, we have industry updates from Bloomberg on Humana’s Medicare Advantage ratings decline, a U.S. Life Insurance Activity report from MIB Life Index, and a merger between Penn Mutual and Vantis Life.
Humana Drops After Ratings for Its Medicare Plans Decline | Bloomberg, October 12, 2016
Humana Inc., the health insurer planning to merge with Aetna Inc., fell the most in more than three months after seeing a sharp decline in government ratings of plans it offers under Medicare.
The percentage of Humana’s membership in plans rated four stars or higher dropped to about 37 percent, or 1.17 million members, in July from 78 percent, or 2.15 million, a year earlier, according to ratings published by the Centers for Medicare and Medicaid Services, or CMS, on Wednesday. The decline is mainly due to lower scores as a result of a recent CMS audit, Humana said in a statement.
MIB Life Index Reports U.S. Life Insurance Activity off -2.3% in September | MIB Life Index, October 11, 2016
After two consecutive monthly declines, U.S. application activity for individually underwritten life insurance fell in the third quarter by -0.6% year over year, according to the MIB Life Index. On the heels of eight consecutive quarters of growth, the Life Index first showed evidence of slowing momentum in the second quarter of 2016. Notwithstanding, the MIB Life Index remains up 2.2% YTD, compared to the same nine months in 2015. For the month, the Life Index declined -2.3% compared to September 2015. Showing seasonal growth for this time period, September application activity was 2.8% higher than that of August. Long term trends show the cumulative composite index value Jan.-Sep. 2016 (81.9) on par with levels seen Jan.-Sep. 2012 (81.4).
Penn Mutual and Vantis Life Insurance Companies to Combine | Business Wire, October 10, 2016
The Penn Mutual Life Insurance Company (Penn Mutual) has entered into a definitive agreement to merge with Connecticut-based Vantis Life Insurance Company (Vantis Life), a deal which will expand Penn Mutual’s presence in the life insurance industry by leveraging Vantis Life’s bank-focused distribution model. As a result of this deal, Vantis Life will become a wholly-owned affiliate of Penn Mutual, a Pennsylvania mutual life insurer since 1847.
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