Author: Greg Winterton

Abacus Life is acquiring Carlisle Management Company SCA, a Luxembourg-based investment manager in the life settlement space, for approximately $200m. Carlisle has approximately $2 bn in assets under management and is licensed as an Alternative Investment Fund Manager under the oversight of the Commission de Surveillance du Secteur Financier in Luxembourg. “We are excited to be joining the industry-leading team at Abacus. The transaction will provide a myriad of potential opportunities and synergies that will be available to our funds, shareholders, and our employees,” said Carlisle Management’s Chief Executive Officer Jose Garcia. “Our company cultures are a perfect fit, and…

Independent bulk annuity and consolidator advisory business K3 Advisory today said there are potentially hundreds of small pension schemes unaware they are within ‘cheque-writing distance’ of being able to afford to buyout their scheme liabilities and urged trustees to take action.   According to data from the Pension Protection Fund’s 2023 Purple Book, 26% of schemes with fewer than 99 members are estimated to be between 75% and 100% funded on a buyout basis (487 schemes).     “These figures are unlike anything we have seen before in terms of funding positions for small pension schemes – and it provides an opportunity that…

Independent bulk annuity and consolidator advisory business K3 Advisory today said there are potentially hundreds of small pension schemes unaware they are within ‘cheque-writing distance’ of being able to afford to buyout their scheme liabilities and urged trustees to take action.   According to data from the Pension Protection Fund’s 2023 Purple Book, 26% of schemes with fewer than 99 members are estimated to be between 75% and 100% funded on a buyout basis (487 schemes).     “These figures are unlike anything we have seen before in terms of funding positions for small pension schemes – and it provides an opportunity that…

It is now a year since UK regulator the Financial Conduct Authority (FCA) brought in its new Consumer Duty (Duty), a regulation requiring all financial services firms to ‘act to deliver good outcomes for retail customers’ for all new product offerings. This month, the FCA closes the loop with the implementation of the duty for closed product offerings.  One of the markets that is impacted by the Duty is the country’s equity release market (ERM). Participants ranging from independent financial advisors right through to the funders themselves (life insurers and pension funds, in the main) have had to get with…

Life settlement asset managers pay significant sums of money to keep a life insurance policy in force until the insured dies. These sums can, and very often do, stretch to millions of dollars from when they assume ownership of a policy to when it matures.  But what happens if a policy they own is declared void ab initio because of a lack of insurable interest?  Under Delaware law in the US, when the present owner acquires an insurance policy, they typically also acquire all right, title, and interest in the policy – including the right to recovery of prior premiums…

Life settlement provider Abacus Life listed on the Nasdaq a year ago, a rarity in the life settlement market. Greg Winterton spoke to Jay Jackson, Founder and CEO at Abacus Life, to get his thoughts on a range of topics in the life settlement market.  GW: Jay, we’re into the second half of 2024 now, and both LISA and The Deal have published their annual data insights into activity in the secondary market. What are your thoughts on the results at an industry level?  JJ: Overall, I thought the results were encouraging for our industry. The life settlement market had…

Investors in the senior living market in the US are typically more active in assisted living facilities, as opposed to a nursing home. The two are very different stateside and provide different levels of care.   But regardless, for senior living investors, the risk associated with investing in the space has typically been a real estate one – vacancy rates. Every unoccupied bedroom is missing rental income that could be going into the bank account of the investor.   But as far as risks go, that’s arguably a small one, with the industry recently seeing occupancy rates increase for the 11th consecutive…

Life insurance application growth in the US ended the first half of the year essentially flat, registering an uptick of just +0.6% year to date, according to the latest MIB Life Index report. Activity in June specifically fell -6.4% year on year but delivered growth for all face amounts over $500,000. Ages 51-60 saw double-digit growth for amounts over $250,000, ages 61-70 saw growth for all face amounts – in the double digits for amounts over $250,000 up to and including $1m and amounts over $2.5m up to and including $5m. Ages 71+ saw double-digit growth for all face amounts.…

UK regulator the Bank of England’s Prudential Regulation Authority (PRA) has published ‘Approach to LIST [life insurance stress test] 2025’, the organisation’s precursor to its planned stress testing of UK life insurers in 2025. The PRA’s 2025 life insurance stress test has three objectives: to assess sector and individual firm resilience to severe but plausible events; to strengthen market understanding and discipline through individual firm publication; and to improve insight into risk management vulnerabilities. It will apply to UK life insurers active in the bulk purchase annuity market with the largest annuity portfolios and will be run under the new…

Life settlement provider Lighthouse Life’s parent company, LHL Strategies, Inc., has completed the acquisition of select assets from Harbor Life Settlements, an SEO lead generation business in the life settlement market. The assets that LHL is taking on include Harbor Life’s websites, data and technology. “Acquiring Harbor Life’s assets, including their go-to-market consumer brand and all underlying intellectual property, enhances Lighthouse Life’s lead generation capabilities,” said Michael Freedman, CEO of Lighthouse Life. “Our continued growth and strategic plans place the company as a true and trusted market-maker for longevity-risk asset funds and managers, employing multiple brands for lead generation and…