We Offer Alternative Returns
The secondary market for US life insurance policies offers long-term investors both risk diversification and attractive returns. The main risk, longevity, is uncorrelated to most other asset classes. We have since 2011 sourced life insurance policies in order to build a diversified life insurance portfolio. Our strategy is quantitative and consists of buying single policies. In order to mitigate longevity risk the fund always obtains a life expectancy report from an independent medical underwriter. Our proprietary premium optimization algorithms are highly advanced and create a competitive advantage.
Resscapital AB is regulated as an alternative investment fund manager (AIFM). We have been involved in the secondary market for US life insurance policies since 2006. Our management team has complimentary backgrounds and international experience from having worked at major banks and hedge funds.
The secondary market in US life insurance policies, also known as life settlements, offers investors the opportunity to purchase life insurance policies at a discount to face value. The estimated size of the annual turnover in the secondary market was approx. 3.9 USD billion in 2014 according to Conning Research. The key investment features making this an attractive asset class are attractive yields combined with excellent credit quality and low correlation with bonds and equities.