Text size
Articles & News from CharlesEdwards
Poll Says Life Settlements to Rebound in Q1 2011
10-28-2010 12:34 am
Life settlements are poised to rebound in the first quarter of 2011 according to industry experts who were recently polled by Charles M. Edwards Company. Some respondents cite increased competition for policies occurring now in the 4th quarter.
Newport Beach, CA (October 28, 2010) - Charles M. Edwards Company, Inc., parent corporation of national life settlement broker CharlesEdwards, announced today the results of an October straw poll conducted among senior executives representing major life settlement provider, life expectancy underwriter and industry trade association participants. Responses from fourteen of thirty (47%) industry members sampled found that most are already seeing signs of increased investor interest this quarter. Respondents are anticipating a strong rebound starting in the first quarter of 2011 as more interested investors and stability is introduced into the industry.
An analysis of comments from poll respondents and a review of recent life settlement activity suggest that issues with the poor quality of earlier product are being worked out of the system, investors are better understanding the unique nature of the investment, and good yields are driving long-term investors into the space.
Several polled indicated that they were seeing more activity from funds with more competition for policies in recent weeks. Some respondents stated that they have added new funds as well as renewed relationships with former funds.
Comments made by several respondents suggested that quality has returned to the space. One respondent stated that “the deals being done now are squeaky clean as far as origination, and the returns are very attractive compared to almost any alternative.”
Charles M. Edwards Company Marketing and Market Research Director, Joan Sneddon, who analyzed the results, said that respondents also noted that the industry will still require ongoing education for new investors due to its unique risk factors, and that moves toward improved standards, regulation, and actuarial assumptions were stabilizing the market.
Steven E. Tartaglini, Chairman and CEO of Charles M. Edwards Company, Inc. commented that the reported recent agreement by Fortress Investment Group to buy the $6.2 billion KBC life settlement portfolio, the emergence of players such as Apollo Global Management, and the interest of pension funds such as Oregon Investment Council are indicators of an improved climate for the life settlement industry.
In addition, according to the September MIB Life Index ℠, new life policies for those aged 60+ increased year-over-year as compared to a decrease in other age groups. This might suggest that seniors who purchased those policies could want to monetize them in a few years through the secondary market.
###
About Charles M. Edwards Company, Inc.
Charles M. Edwards Company, Inc., headquartered in Newport Beach, California, is a national life settlement company that currently operates two divisions: CharlesEdwards, a national life settlement brokerage, and Life Settlement Administrators (LSA), a contracted case processing servicer for other life settlement brokers. CharlesEdwards, a premier broker in the life settlement market, has been the trusted name in life settlementssince 2005. (www.charlesmedwards.com) (www.lifesettlementadmin.com)
CharlesEdwards and the trusted name in life settlements are registered trademarks of Charles M. Edwards Company, Inc.
Contact:
Joan Sneddon
800.492.5186
jsneddon@charlesmedwards.comBack to the Life page »
