JO Hambro moves into life settlement

Nudgem Richyal, a fund manager at JO Hambro Capital Management (JOHCM), has moved into the life settlement market, an area he says is in early cycle growth.

He has added Traded Life Policies (TLPs) to the Global Select portfolio as an uncorrelated asset class, which he says has not experienced the downturn other categories have suffered in the past year.

A life settlement is the transaction in which a life insurance policy owner sells the policy to a third party investor. Richyal says this market is growing fast, particularly in America, where people in retirement are seeking alternative sources of income. The asset class is benefiting from investor demand to gain access to uncorrelated returns and Richyal calculates the average rate of return at 10% a year.

Richyal and Chris Lees, senior manager on the fund, took a position in Life Partner Holdings in November, the only publicly listed company in the life settlement sector in America. It reported profits in  mid-December that beat analyst expectations and previous records.

Source: Natalie Kenway / FundStrategy.co.uk

Many providers and brokers will inform life insurance agents and professionals that with life settlements they are offering a tremendously consumer beneficial product and also creating the opportunity for a large commission on the settlement.

For most Life Agents, Life settlements can offer you another tool to help your clients properly manage their wealth. Once you determine that a life policy no longer fits your client’s current or future needs, you can offer a valuable service by facilitating a conversion of that life policy into cash. By cash we mean a considerable amount over the current cash surrender value (CSV). With the cash they earn from a life settlement, clients may reinvest in such products as fixed or variable annuities, long term care insurance, stocks, bonds, or mutual funds. Other investment tactics may used to secure assets depending on the current market condition. Should the insured see fit, clients may also purchase a new life insurance policy with better or more affordable terms that may be better in the long run. Clients tend to prefer this approach when the premiums become reduced.  So the above products that can be combined with a life settlement offer even additional commission and revenue streams.

Currently all types of life insurance will be considered. The following categories, however, will take priority.  A second to die policy where one of the insureds is already deceased. A key-man corporate life insurance policy from a company who make be looking to create assets and distribute cash. A term policy that is convertible into a universal life policy for any insureds over the age of 70. Commission to the agent representing the client in the settlement is usually in the 1-3% range of the face value. Please check with your broker or funder for the exact commission structure.

Call 1-888-973-8377 today and start earning large life settlement commissions.

Creative Life Insurance offers info about maximizing term insurance policies.

Coventry is expanding their operations to London. Coventry is one of the largest purchasers in the life settlement market. We have not been informed of exactly the operations of this office, but it can only be positive growth for the market.

Coventry First said it has opened a London office and hired two managing directors, including former Deutsche Bank investment banker Michael Crane.

Besides Crane, the company also has hired Simon Erritt, according to Sheylea Graybill, director of marketing for Coventry.

Crane was previously managing director for longevity derivatives for Deutsche Bank. He left the bank in October.

Coventry is based in Fort Washington, PA.

More Life Settlement Business related updates.

Here at Life Settlement News, we usually don’t cover the lawyer updates, but we have received some emails about who can handle law or discrepancies related to life settlement transactions. This is recent news so it might be relevant to someone looking for this type of service. We do not know what states they can offer their services yet.

Potter Anderson & Corroon LLP in Wilmington announced it has elected David E. Moore and Michael W. Whittaker as partners. Both were previously associates at the firm. Moore, a graduate of the University of Virginia, Arizona State University and Temple University School of Law, is a member of the firm’s litigation group and concentrates his practice in intellectual property litigation, products liability defense, utility and railroad representation, and real estate litigation. He also has experience in representing corporate clients in alternative dispute resolution proceedings. Whittaker, a graduate of University of Cincinnati and Seton Hall University School of Law, is a member of the firm’s business group and focuses primarily on advising clients regarding the formation, operation and dissolution of Delaware alternative entities, including limited liability companies, statutory trusts, partnerships and special purpose corporations, and their use in complex business and commercial transactions. In addition, he acts as Delaware counsel to banks, trustees and other financial institutions involved in structured finance transactions, securitizations, life settlement and insurance premium finance transactions, and other lending and finance transactions.

To learn about premium finance, vist Premium Finance Life.

To learn about life settlemetns, visit Life Settlement Info.