Continental General Recaptures LTC Risk from Munich Re, Enhancing Asset Base

Continental General Insurance Company has finalized an agreement to recapture risk from a block of life and long-term care (LTC) policies previously ceded to Munich Re Life US. This transaction entails Continental General assuming 100% of the risk, liabilities, and assets associated with this policy block, resulting in a significant increase in the company's assets, liabilities, and reserves. The original reinsurance arrangement dates back to 2002, and Continental General inherited this structure when it acquired Kanawha Insurance Company from Humana Inc. in 2018. Since then, Continental General has managed the life and LTC policies through its affiliated administrator, Continental General Services, LLC.

This recapture aligns with Continental General’s strategy to bring all LTC policies onto its books and bolsters its position as a major player in life and long-term care insurance. It follows a previous acquisition of LTC policies from Elevance Health Inc. in 2023, leveraging the company’s extensive experience with more than 60 years in administrating insurance blocks. By taking full risk on the policies, Continental General aims to streamline operations without sharing risk or premiums with reinsurers.

The transition, effective from July 1, 2025, and completed by August 29, 2025, positions Continental General to directly handle policyholder payments, premium collections, and related obligations. This approach ensures continuity and simplifies the management framework for the involved policyholders. The company’s domicile is Texas, and it operates in 49 states plus the District of Columbia and the U.S. Virgin Islands.

Overall, this strategic risk recapture strengthens Continental General’s asset base and enhances its capacity to manage long-term care insurance products amidst evolving market dynamics. The move highlights ongoing adjustments within the insurance and reinsurance sectors, where companies seek to optimize risk retention and portfolio control.

Stakeholders in the insurance and reinsurance markets should monitor such transactions as they impact capital management, risk exposure, and underwriting performance. Continental General’s execution of this risk shift reflects broader trends of companies reassessing reinsurance strategies to consolidate risk and improve financial metrics.