Penn Treaty Spends $2.1 Million On Rebuilding LTC Distribution Network

NU Online News Service, Aug. 12, 2003, 4:33 p.m. EDT – Penn Treaty American Corp., Allentown, Pa., says it has tried to lay the ground for strong future sales of long term care insurance by spending $2.1 million during the second quarter to print new sales materials, hire sales and marketing managers, and build relationships with established LTC insurance distributors.

"The company has experienced a 67% rise in new long term care insurance policy applications submitted, rising from an average of 141 per week in the first quarter of 2003 to an average of 236 applications submitted per week for the last three weeks of July," the company says.

Penn Treaty, which is working to overcome regulatory problems that temporarily stopped its long term care insurance sales in 2001, is reporting $23 million in net income for the latest quarter on $131 million in revenue, up from $12 million in net income on $116 million in revenue for the second quarter of 2002.