As global markets become increasingly volatile and complex, institutional investors are actively seeking non-correlated, alternative asset classes to diversify their portfolios. Life settlements have emerged as an attractive option, offering the potential for stable returns uncorrelated with traditional market movements.

The life settlement market has evolved significantly over the past decade, with increased regulation, enhanced transparency, and the emergence of sophisticated institutional managers driving its maturation. Today, the market represents a growing opportunity set exceeding $70 billion in face amount, with an average annual transaction volumes over the past decade split between approximately $5 billion in secondary market sales and $9 billion in tertiary market trades. For institutional investors seeking to diversify their portfolios and generate attractive risk-adjusted returns, life settlements present a compelling investment case backed by regulated insurance carriers and supported by sophisticated analytics and risk management tools.

This white paper explores the fundamentals of life settlements as an investment opportunity. We examine the asset class's mechanics, its distinct market structure, the underwriting and risk management processes, past and present market participants, and how life settlements can fit strategically within a diversified portfolio. As life settlements continue to mature, they offer an appealing potential pathway for investors to enhance portfolio resilience, balance risk, and capture returns largely independent of conventional market forces.

 

Best regards,
Adam

In this white paper, we will delve into the transformative impact of AI on life settlement medical underwriting, illustrating how advanced algorithms and machine learning techniques are enhancing the accuracy, efficiency, and fairness of risk assessments. By automating complex data analyses and predicting health outcomes with unprecedented precision, AI is not only streamlining the underwriting process but also facilitating more personalized and data-driven decision-making. This paper examines both the opportunities and challenges posed by AI, offering insights into its potential to redefine traditional life settlement underwriting practices and significantly improve overall accuracy in life expectancy.

Register here!

In an exclusive webinar hosted by Preston Capital, discover why sophisticated institutional investors are adding longevity contingent assets to their private credit portfolios. Leading this insightful discussion is David Posnick, Executive Chairman of Preston Capital and the former Co-Head of Distressed Investing for Blackstone Credit.

Wednesday, July 31, 2024 | 4:30 – 5:30 p.m. ET

As global markets have evolved to become more volatile, complex, and uncertain, investors are increasingly turning to non-correlated, esoteric asset classes to diversify their portfolios. Among these niche asset classes, life settlements stand out for their ability to provide ample diversification, attractive risk-adjusted returns, non-correlated return streams, low volatility, and reliable cash flow.

Concurrently, the growing demographic of Americans over 65 years old is exploring new ways to leverage their existing assets to enhance their financial well-being or supplement their retirement savings. Life settlements have gained recognition over the past decade as a viable option for those with unwanted or unneeded life insurance policies. A life settlement is the regulated sale of a life insurance policy to a third-party investor, providing the policyholder with a lump sum cash payment that typically exceeds the policy’s cash surrender value. This transaction offers immediate financial benefits to the seller and transforms a previously illiquid asset into a source of economic value.

This white paper explores the benefits of life settlements to both the insureds selling their policies as well as investors looking to add a strategic addition to investment portfolios in today's evolving financial landscape.