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The Life Settlement market presents both opportunity and risk. Clients from all corners of the life settlement industry have relied on L&E to value and manage their risks in order to successfully realize the opportunities. Our consultants have worked alongside life settlement providers, brokers, marketing groups, underwriters, state insurance departments, and court-appointed receivers. We have a firm understanding of the viatical and life settlement industry, including expertise in:
LIFE SETTLEMENT APPRAISALS AND PROJECTED CASH FLOW: L&E actuaries and consultants have substantial experience in evaluating expected premium and maturity cash flows, by calendar year, for in-force blocks of policies.
Projections of future premium payments are based on premium schedules and can incorporate alternative premium strategies such as premium loans or cash value reductions. Projections of future maturities recognize key risk factors likely to impact expected mortality, such as diagnosis and life expectancy at the time of purchase. L&E actuaries and consultants perform statistical analysis on historical mortality experience of the portfolio and apply current medical research for diagnosis-specific mortality.
Our consultants utilize cash flow projections to: assign a current value to the portfolio, provide guidance for setting premium funds needed to secure payment of future premium obligations, and evaluate compensation and expected returns to investors.
PORTFOLIO AND LIFE INSURANCE MANAGEMENT: As insurance experts, L&E can provide valuable insight when defining management strategies for maximizing a portfolio’s value. L&E can identify policy options available to reduce future premium outlay and identify those policies with the highest return to the portfolio.
For portfolios available for sale, L&E can assist in evaluating offers for purchase – many offers provide for returns based on ongoing maturities. Our analysis of offers will allow you to select the best offer consistent with defined objectives.
OTHER SUPPORT: L&E actuaries and consultants have provided valuable support to underwriting and marketing companies in the production of new business. Additionally, L&E can:
- Assist with medical evaluation of in-force and new business policies;
- Identify potential partners for third party administration; and
- Identify potential purchasers for a portfolio.
L&E actuaries and consultants are a trusted authority in the life settlement industry. We adhere to the actuarial profession’s Standards of Practice and Code of Professional Conduct to uphold the professional qualifications and ethical standards our clients deserve.
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