Minimum Age For Life Settlements?

[pcbinsurance]

Fasano Responds to Concerns Over 21st LE Extension:

Fasano Responds to Concerns Over 21st LE Extension - YouTube

Is there a "vibrant market" today as LSA states above? I don't believe so. Long term outlook? Hopefully better.

 

[tlmarketing]

That was definitely a vindication video for Fasano as they've taken a beating for a long time over their conservative LE estimates which are now looking pretty accurate! Too bad it's just another nail in the life settlement coffin.

 

[lifesettlementadvisor]

The market will never get back to the 2004-2008 days. In those years yields were compressed and buyers were not as sophisticated in examining longevity as we are today. Almost any file, regardless of origination or longevity risk, was purchased in a single digit yield.

Today's market is still "vibrant" and growing. New capital sources have entered the market for 2013 and previous capital sources have raised new funds to purchase life settlements (including reinsurers). Yields are slowing compressing, especially small face life insurance policies.

What is interesting is the view point that the producer channel takes to the asset class. I am seeing more and more files submitted by CPAs and attorneys compared to producers. Also Providers are starting to market directly to the consumer (like the Betty While campaign).

 

[tlmarketing]

I'm well aware of many funds setup to purchase life policies....most have raised nowhere near their goal in order to launch....even when you factor in reinsurance companies, capital is no where near the $1 billion mark you mentioned.

Below are some of the LS funds in marketplace looking to raise capital....

SC Life Settlement Asset Fund
Kachina Life Settlement Fund
Cen Tex Asset Management Fund
3 Disciplines Funds
Secure First Funding
U.S. Safe Wealth Creation
Way Off The Street Fund
72 Vest LS Fund
Wealth Fund I & II
Hawthorne LS Fund I LP
Innovative Financial Life Settlement Fund
Northeast Life Settlement Fund
Kishwaukee Life Settlement Fund
Royal Life Settlement Fund
Brazos Life Settlement Fund
New England Life Settlement Fund II
GWG Series I Secured Note PP
Rhinebeck Fund

Total fund size for all of these combined funds have raised less than $100 million....even when you factor in the reinsurance companies such as the pretenders in CT....not even close to $150m.

 

[lifesettlementadvisor]

To your point - most of the groups you listed are not huge players in the space or just small lpi focused funds.

The "pretenders in CT" just won a huge portfolio in the tertiary market.

And oddly enough, you mentioned GWG as well as posting a link to their SEC filing - which states their portfolio size of over

572M. If you look at their PR, they just renewed a 100M credit facility as well.

Some people hate life settlements - can't do much about that. At the end of the day, the industry isn't going anywhere and is gaining popularity on the institutional side. The industry has adjusted many times over the years and will always find policies to purchase, regardless of the channel that brings the policies to market and collect the commission.

 

[tlmarketing]

Exactly - tertiary market....does nothing for new settlements. these are all previously settled life policies being traded among different companies, hedge funds, etc..

572 m portfolio is not new money coming into the marketplace, it represents existing portfolio, money already spent....not to mention that portfolio needs to be revalued due to 21st services LE changes...currently a 7% negative adjustment.

Also the $100m credit facility is not new money, it is existing facility that was renewed with new terms...Currently $52-$55 million of that facility was already spent, and the new terms include higher interest rates, plus new reserve requirements of 12 months of premium vs old reserve requirement of 6 months.

I like life settlements, but the market has changed and not for the better, market has steadily contracted for last few years, offers are fewer and farther between, and not impressive.

 

[Insrecruit]

To your point - most of the groups you listed are not huge players in the space or just small lpi focused funds.

The "pretenders in CT" just won a huge portfolio in the tertiary market.

And oddly enough, you mentioned GWG as well as posting a link to their SEC filing - which states their portfolio size of over

572M. If you look at their PR, they just renewed a 100M credit facility as well.

Some people hate life settlements - can't do much about that. At the end of the day, the industry isn't going anywhere and is gaining popularity on the institutional side. The industry has adjusted many times over the years and will always find policies to purchase, regardless of the channel that brings the policies to market and collect the commission.

I agree with you LSA I've been in this biz for a long time. Its still a viable business and there will always be haters in this market place.

 

[pcbinsurance]

Who's hating? I think you can do better than posting stuff that isn't true.

 

[tlmarketing]

Who's hating? I think you can do better than posting stuff that isn't true.

Exactly....well said.

 

[Insrecruit]

Who's hating? I think you can do better than posting stuff that is

As far as truth 76 year old an above has been the norm for me. Most European funds have an age minimum. I close about 3 policies every month and have submitted cases that were 70 to 75 and there le's were always too long. This is from experience not observation you want to tell agents 73 year holds are they way to go have at it and spend your money on le's n meds for nothing.