Life Settlements: Continued Growth, Positive Outlook
Conning—Life Settlements Market Growth Continues into 2018
(Hartford, CT) November 5, 2018—The life settlements market seems to have stabilized and embarked on a steady growth trajectory in the last two years, according to a new study by Conning.
“In 2017 and through the first half of 2018, the life settlement market has exhibited growing strength,” said Scott Hawkins, a Director, Insurance Research at Conning. “The volume of new settlements continues to increase, a positive indicator for growth in the number of in force life settlements. Geographic expansion, capital raises, and the sales of policy portfolios are recurring themes among market participants.”
The Conning study, “Life Settlements: Continued Growth, Positive Outlook” reviews the current market for life settlements and presents our forecast for 2018 - 2027. Further, the study analyzes the performance of insurers targeted by life settlements investors and continues Conning’s analysis of the drivers of cost of insurance increases by certain insurers over the past few years.
“The second consecutive year of growth in the amount of face value settled may indicate a renewed interest in life settlements by investors,” said Steve Webersen, Head of Insurance Research at Conning. “Investor interest reflects a combination of a prolonged low interest rate environment, continued investment allocations to non-correlating alternative asset classes, and the stability of the life settlement landscape. This stability results from greater investor understanding of the asset class and associated risks, a more favorable tax environment, and demographics trends driving a growing supply of policies that could be settled.”
“Life Settlements: Continued Growth, Positive Outlook” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com
Conning (www.conning.com) is a leading investment management firm with approximately $134 billion in global assets under management as of September 30, 2018.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of September 30, 2018, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, Cathay Securities Investment Trust Co., Ltd. (“SITE”) and Global Evolution Fondsmæglerselskab A/S and its group of companies (the “Global Evolution Companies”). The Global Evolution Companies are affiliates of Conning. SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities.