Continental General Finalizes Recapture of Kanawha Life and Long-Term Care Policies from Munich Re
Continental General Insurance Company and its affiliates (“Continental General” or the “Company”) announced the completion of a major strategic transaction involving the recapture of a block of life and long-term care (LTC) policies previously reinsured with Munich Re Life US, part of the global Munich Re Group. This move, finalized on August 29, 2025, with an effective date of July 1, 2025, positions Continental General as the sole risk holder of this insurance block and marks an important milestone in its long-term care insurance strategy.
Transaction Overview
Under the terms of the agreement, Continental General has recaptured the ceded portion of risk related to this block of policies, taking full ownership of both the associated liabilities and the corresponding assets. This transaction significantly increases the Company’s balance sheet by expanding its assets, reserves, and liabilities, while simultaneously enhancing its control over policyholder management.
As a result of the recapture, Continental General now holds 100% of the risk associated with this LTC policy block. By consolidating full responsibility, the Company eliminates any premium or risk-sharing arrangements that previously existed with Munich Re. From this point forward, all premiums collected and all obligations related to claims, benefits, and policyholder services will be managed directly by Continental General without any reinsurance participation.
Historical Context
The reinsurance structure being unwound dates back more than two decades. In 2002, the original block of long-term care policies was ceded to Munich Re as part of a reinsurance agreement designed to spread risk and provide financial stability. Such arrangements were common at the time, as insurers sought to limit exposure to the growing liabilities associated with long-term care insurance.
Continental General inherited this reinsurance arrangement in 2018 when it acquired Kanawha Insurance Company (“Kanawha”) from Humana Inc. Along with Kanawha, Continental General assumed responsibility for administering and managing both the life insurance and long-term care policies that were included in the acquisition. While Continental General has actively managed the policies for the past seven years through its affiliate Continental General Services, LLC, the actual risk remained partially transferred to Munich Re.
By completing this transaction in 2025, Continental General has now brought the entire block back under its direct risk management, closing a chapter on a reinsurance structure that has been in place for 23 years.
Strategic Significance
For Continental General, the transaction represents more than just a balance sheet expansion. It marks the realization of a strategic objective that leadership has been pursuing for years: regaining full ownership of all long-term care policies under management.
Michael Gorzynski, Executive Chairman of Continental General, emphasized this point, stating:
As Continental General continues to grow, this transaction represents the latest milestone in the expansion of our life and LTC portfolio and is particularly meaningful as it is the fruition of our longstanding goal to bring all of our existing LTC policies back onto our books. It also underscores our long-standing commitment to serving as a trusted partner of choice for the long-term care industry and the nation’s leading reinsurance companies.
This move follows Continental General’s 2023 acquisition of a block of long-term care policies from Elevance Health, Inc. Taken together, the Elevance acquisition and the Munich Re recapture reinforce Continental General’s growing position as a specialist in managing complex LTC insurance portfolios.
Implications for Policyholders
From a policyholder perspective, the recapture is expected to be seamless. Continental General has already been administering these policies since 2018 and will continue to manage all aspects of policyholder service, including claims processing, benefit payments, and premium collection.
David Ramsey, President and Chief Executive Officer of Continental General, reassured customers of the continuity and stability of the transition:
By recapturing this block of Life and LTC policies, we are not only growing our asset base but are also strengthening our capabilities through a recapture of risk that would have previously been transferred to a reinsurance company. Given our extensive experience managing this block since 2018, our team will be well positioned to ensure a smooth and seamless transition for all policyholders.
In practical terms, policyholders should notice no disruption in service. The Company will continue to be their primary point of contact, just as it has been for the past several years. However, the move consolidates oversight and accountability within Continental General, which may allow for faster decision-making, improved claims handling, and potentially enhanced long-term financial security.
Broader Industry Context
The transaction highlights a broader trend in the U.S. insurance industry: the re-evaluation of long-term care insurance portfolios. Originally introduced in the late 20th century, LTC policies became popular as consumers sought ways to cover the rising costs of nursing home care, assisted living, and home health services. However, insurers underestimated the longevity of policyholders, the rate of healthcare inflation, and persistency rates, leading to significant financial strain on carriers.
In response, many insurers exited the LTC business, transferred blocks to reinsurers, or sold closed blocks to specialist managers like Continental General. By specializing in managing these legacy liabilities, Continental General has carved out a niche role in the insurance ecosystem.
Recapturing risk from Munich Re signals confidence in the Company’s actuarial expertise, administrative capabilities, and financial resilience. It also positions Continental General to benefit directly from future premium inflows rather than sharing them with a reinsurer, while retaining full accountability for paying claims.
Strengthening Continental General’s Position
The recapture provides Continental General with several strategic advantages:
- Balance Sheet Growth — By assuming both the assets and liabilities of the policy block, the Company materially increases its total assets under management, enhancing its financial scale.
- Risk Consolidation — Owning 100% of the risk simplifies the Company’s reinsurance structure, giving it complete control over policy performance and financial outcomes.
- Operational Efficiency — With no need to coordinate with a reinsurer, Continental General can streamline administration and improve responsiveness to policyholder needs.
- Strategic Alignment — The move aligns with the Company’s long-term vision of being the direct risk holder for all LTC policies it manages, a strategy that enhances accountability and reputation in the market.
- Industry Positioning — This transaction, combined with the Elevance LTC acquisition, strengthens Continental General’s role as one of the few insurers actively expanding in a sector where many competitors are retreating.
