The need for reliable investment returns in an era of protracted low interest rates and stock market volatility is driving the influx of new capital from institutional investors into life settlements, according to speakers yesterday at the Life Insurance Settlement Association (LISA)’s Sixth Annual Institutional Investor Life Settlement Conference.
ORLANDO, Fla., Feb. 23, 2016 (GLOBE NEWSWIRE) -- The need for reliable investment returns in an era of protracted low interest rates and stock market volatility is driving the influx of new capital from institutional investors into life settlements, according to speakers yesterday at the Life Insurance Settlement Association (LISA)’s Sixth Annual Institutional Investor Life Settlement Conference.
The one-day event, the leading professional gathering of institutional investors in the life settlements asset class, was held at The Ritz-Carlton Battery Park in New York City. The conference has now sold out four years in a row and this year’s event drew a record number of attendees.
“There is much more demand today among institutional investors for non-correlated assets,” said Bill Corry, owner of Corry Capital Advisors, which works with a large number of pension funds and hedge funds who are institutional investors in life settlements. “We’ve developed new relationships with multiple different pension funds in just the last few years who have invested capital into the life settlement market. These investors are currently receiving good returns and safety of principal.”
Corry was joined for a featured panel session at the conference by Dan Young, president of Magna Life Settlements, a subsidiary of Vida Capital, Inc., a pioneer among institutional investors in the life settlements asset class.
“Traditional fixed-income investments just aren’t delivering the kinds of returns that institutional investors require as hedge positions in their portfolios,” said Young. “Life settlements are very attractive to these investors and we’re seeing a dramatic increase in new capital into this asset class.”
The conference opened with a keynote address from Colin Devine, a nationally known consultant who provides strategic advisory services to the insurance and investment management sectors. Devine reviewed a number of important developments in the life insurance industry and talked specifically about his projections for the life settlement marketplace.
“The long-term outlook for the life settlement business is positive, driven by the changing demographics of the aging U.S. population,” said Devine. “Life insurance settlements are well-positioned to serve as a core financial planning tool for seniors, especially as a vehicle for generating income to help pay for long-term care expenses.”
Other conference sessions included:
- A presentation by Jeffrey Bollerman, senior vice president of Houlihan Lokey, who reviewed the characteristics of the tertiary market, the outlook for tertiary activity and its implications for attracting new capital to the market;
- An update on the implications of recent cost of insurance (COI) increases announced by several life insurance companies, provided by Ann Marie Juliano, co-founder of Demeter Investments Limited, and Michael Brohawn, managing director of ITM|TwentyFirst;
- A session led by Michael Fasano, founder and President of Fasano Associates, and Vince Granieri, founder and CEO of Predictive Resources, LLC, regarding innovations in mortality risk analysis to improve underwriting outcomes; and
- A best practices session focused on the dynamic process of constructing a life settlement portfolio and then managing it to achieve the objectives of the investment, co-led by John Collins, vice president of Lyric Services, LLC, and Chris Conway, managing director of Longevity Asset Advisors.
LISA’s annual gathering for institutional investors is the largest event in the industry that brings together executives from pension funds, hedge funds, family offices, foundations and endowments to discuss the latest developments in the life settlement market. CMG Life Services and Coventry Direct served as headline sponsors of this year's event, which was also made available to virtual attendees via Web-based live stream.
“This year’s conference provided attendees with an industry outlook, real-life investor experiences in the life settlement market, an update on performance and valuation standards, and an in-depth analysis of building and managing a life settlement portfolio,” said Darwin Bayston, president and chief executive officer of LISA. “It served as a safe place for investors to gather with their peers and colleagues in the industry, including some who are already investing in the life settlement space and some who are considering the asset class for their portfolios.”
The conference included the debut of a mobile app for the event, which allowed participants to access the conference agenda and session descriptions, review presenter information and connect with other conference attendees to schedule one-on-one appointments. The mobile app was sponsored by AVS Group.
A life settlement is the sale of a person’s life insurance policy to a third-party investor. In a life settlement, the policy’s owner transfers the ownership of that policy in exchange for an immediate cash payment from the buyer. Candidates for life settlements are typically aged 65 or older, with a life insurance policy that has a “face value” (death benefit) of more than $100,000. About the Life Insurance Settlement Association
The Life Insurance Settlement Association (LISA) is the nation’s oldest and largest organization representing participants in the life settlement Industry, with a current membership of more than 90 companies doing business in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The mission of LISA is to promote the development, integrity and reputation of the life settlement industry, to advance the highest standards of practice and professional development for the industry, and to educate consumers and advisors about a life settlement as an alternative to lapse or surrender of a life insurance policy. For more information, visit www.lisa.org
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