Our Life Insurance Portfolio is Taking Shape
Independent market updates confirm that the secondary market for US life insurance policies still offers highly attractive returns. Ress Life Fund continues to take advantage of the distressed market and is now well under way to construct a diversified life insurance portfolio. Our strategy is quantitative and consists of buying single policies in regulated states. 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 give the fund an edge. We focus on smaller policies in order to own as many policies as possible and build a diversified portfolio.
Ress Capital Fund Management S.A. is a fund management company incorporated Luxembourg. The company manages the Ress Life Fund, which is an open-ended investment fund investing in a diversified portfolio of US life insurance policies, also known as Life Settlements. Ress Capital 's focus is on managing both third party mandates and to launch further sub-funds under its umbrella fund structure in Luxembourg.
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 5 USD billion in 2011 according to Conning Research. The market is expected to resume growing again in the coming years according to forecasts from the research firm Sanford C Bernstein. The key investment features making this an attractive asset class are high yields combined with excellent credit quality and low correlation with bonds and equities. Currently, expected gross returns are at historically high levels.