Life Settlements: An Asset Class Resets


Anne Steinberg  
Kitchen Public Relations, LLC

Conning Research: Life Settlements Asset Class Resets to Sustained Buyer’s Market Conditions

--Conning estimates 2010 annual volume reduced to $3.8 billion face; in-force flat at $36 billion
--Current investors enjoy buyer’s premium

(Hartford, CT) October 5, 2011—Sustained buyer’s market conditions continue to depress life settlements volumes despite apparent increased awareness and demand from consumers, according to a new study by Conning Research & Consulting.

“Conning estimates life settlements sales decreased for the third consecutive year in 2010, to $3.8 billion,” said Scott Hawkins, analyst at Conning Research & Consulting. “Capital remains skittish about returning to this asset class, and most current investors are focused on acquiring distressed portfolios rather than purchasing new policies. Given the combination of death claims and lapses on settled policies, the $36 billion in-force life settlements barely increased over the prior year.”

The Conning Research study, “Life Settlements: An Asset Class Resets” presents Conning’s analysis of the life settlements market’s potential impact on insurers and reinsurers, along with estimates of current market size and a long term forecast and analysis of market conditions.

“In terms of annual volumes, the current secondary life settlements market looks a lot like the development phase of this class, from 2002 to 2004, with relatively few investors active in the market. Those who are active are enjoying a buyer’s premium,” said Stephan Christiansen, director of research at Conning. “That said, one critical difference today is the level of consumer understanding and demand, both of which are significantly higher now. We have analyzed transactions, drivers and provider initiatives in this market, but do not yet have a feel for the likely timeline for a turn from the buyer’s market conditions and accompanying rise in volumes.”

“Life Settlements: An Asset Class Resets” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting

Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers.  Conning Research & Consulting has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.