[August 22, 2017]

LTCG Agrees to Acquire LifePlans

LTCG, the recognized leader in business processing outsourcing for long term care insurance, just announced it has signed a definitive agreement to acquire LifePlans, Inc., a national provider of innovative risk management solutions for insurers, and its Canadian division LifePlans LTC Services, Inc. The agreement covers the purchase of LifePlans' long term care and related risk management services and assets from Munich American Reassurance Company (Munich Re, U.S. (Life)). Munich Re, U.S. (Life) will retain LifePlans' healthcare services business and operate under the name LP Health Services, LLC.

This strategic acquisition positions LTCG as the undisputed industry leader in the area of underwriting and claims, and expands its North American nurse network with the addition of more than 2,000 clinicians. These nurses perform face-to-face and telephone screenings in order to collect valuable insight about an applicant's risk factors or an existing policyholder's eligibility for benefits. This information helps insurers make informed decisions that lead to better risk management. LifePlans also offers an evidence-based cognitive screening tool, the Enhanced Mental Skills Test (EMST), which will complement LTCG's own Minnesota Cognitive Acuity Screen (MCAS), bringing together the two most powerful cognitive screening tools in the industry.

LifePlans has partnered with long term care insurers for three decades and is a well-respected brand in the LTC insurance industry. Since its inception, the organization has built one of the most comprehensive field network of nurses in the United States, and has expanded its customer contact center in terms of capabilities, training and new technologies. Their suite of services is an ideal complement to LTCG's own end-to-end administrative solution and will add value to its existing partnerships with leading insurers. LTCG will also be able to expand the breadth of its services thanks to LifePlans' proprietary programs. One such example is the LIFT wellness program, which includes a comprehensive in-home assessment to help poliyholders make lifestyle changes that promote wellness and prevent falls-one of the leading drivers of LTC claims.

"This acquisition showcases LTCG's willingness to remain committed to the long term care industry," said Peter Goldstein, CEO of LTCG. "By integrating LifePlans' highly knowledgeable people, innovative programs and market expertise into our own solutions, we are making an investment in the future success of our customers."

LTCG is excited to leverage LifePlans' unique capabilities, and offer the customers of both companies an enhanced set of services and flexible engagement models. The company is expecting minimal disruption to these organizations as this transition takes place.

"Munich Re is proud to have been part of LifePlans' evolution as an organization, and we are confident that its long-standing reputation as a high quality risk management provider will endure," said Michael DeKoning, President and CEO of Munich Re, U.S. (Life). "We are committed to a seamless transition for LifePlans' employees, customers and business partners, and given LTCG's reputation in the industry, we are confident that we are leaving this business in good hands. Further, we believe our health care services business, LP Health Services, is well positioned to remain a leader in providing health care assessment services and to continue providing superior services to its health care customers."

About LTCG

LTCG is the leading provider of administrative solutions and clinical services to the long term care and life insurance industry, with over two decades of experience in this space. LTCG currently manages over one million policies and serves more than 50 carriers nationwide. The company addresses all types of customer needs and policy requirements-from application processing and underwriting of new business to claims and administration of open and closed blocks. LTCG's advanced data analytics, actuarial and risk management capabilities and unmatched industry expertise can help organizations manage their business and develop emerging products such as hybrid life/long term care policies. In addition, LTCG provides clients with unique insight about risk management built upon the industry's largest database of long term care underwriting and claims outcomes. For more information, visit www.LTCG.com.

Munich American Reassurance Company

Munich Re, U.S. (Life), founded in 1959, is one of the largest reinsurers in the U.S. offering life and disability reinsurance to insurance companies throughout the United States. The company also writes group, credit and other reinsurance products. Headquartered in Atlanta, with offices in Chicago and New York, the company is licensed, accredited or authorized in all fifty states; Washington, D.C.; Guam; and Puerto Rico.

Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2016, the Group - which combines primary insurance and reinsurance under one roof - achieved a profit of €2.6bn. It operates in all lines of insurance, with over 43,000 employees throughout the world. With premium income of around €28bn from reinsurance alone, it is one of the world's leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in ERGO, one of the leading insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2016, ERGO posted premium income of €16.0bn. Munich Re's global investments (excluding insurance-related investments) amounting to €219bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.

Disclaimer

This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.

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