The Deal’s 2023 Annual Ranking Shows Abacus Life (ABL) Leads Life Settlement Industry with 26% Market Share in Funds Paid to Clients
Abacus Life (NASDAQ: ABL) announced that it led the life settlement industry in 2023 with a 26% market share in funds paid to clients, according to The Deal's annual ranking.
The company paid $220 million in life settlement funds, equivalent to over 20% of policy face value on average, which is 32% higher than its closest competitor.
Additionally, Abacus acquired 640 policies with a collective face value of nearly $1.1 billion, reflecting a 31.4% increase from 2022, compared to the industry growth of 4%.
CEO Jay Jackson expressed pride in the company's achievements and commitment to delivering exceptional value to clients.
- Abacus Life led the life settlement industry with a 26% market share in funds paid to clients in 2023.
- The company paid $220 million in life settlement funds, representing over 20% of policy face value on average.
- Abacus's payout was nearly 32% higher than its closest competitor.
- The company acquired 640 policies with a collective face value of nearly $1.1 billion in 2023.
- This marks a 31.4% increase in policies purchased from 2022, compared to the industry growth of 4%.
- No significant negative business or financial aspects are reported in the press release.
Insights
Abacus Life's announcement that it led the life settlement industry by paying $220 million to clients in 2023 provides significant insights into the company's financial health and market position. Abacus’ 26% market share is an impressive feat, especially given that it delivered an average of over 20% of the policy face value to sellers, a figure 32% higher than its nearest competitor. This suggests operational efficiency and a strong capability to attract and satisfy clients.
From a financial perspective, the 31.4% increase in policies purchased from 2022 is remarkable, particularly in an industry with an annual total growth of only 4%. This growth indicates aggressive market penetration and a likely increase in revenue streams. Investors should consider the potential for sustained high growth rates but also be cautious of the scaling challenges and the economic environment's impact on the company's future performance.
The company’s ability to pay a substantial portion of the policy face value means it likely has robust actuarial models and risk assessment frameworks. However, investors should also bear in mind the sensitivity of this industry to policyholder lifespans and market conditions, which can significantly impact returns.
The data from The Deal’s annual ranking underscores Abacus Life's strong position within the life settlement market. Holding a 26% market share in funds paid to clients is a clear indicator of the company's competitive advantage. For a retail investor, this suggests that Abacus is not only a market leader but also a trusted entity in a niche financial market.
A significant aspect is the company's acquisition of 640 policies, with a collective face value nearing
Abacus Life's performance in 2023, as highlighted by The Deal, showcases its expertise in actuarial science and risk management. The company's ability to pay out
The fact that Abacus paid clients over 20% of policy face value on average is notable, especially given that this figure is 32% higher than the closest competitor. This suggests that Abacus's models are highly accurate, allowing them to offer better terms than their competitors while still maintaining profitability. For investors, this level of actuarial proficiency suggests a lower risk profile for their investments, provided the company continues to manage longevity risks effectively.
However, the industry is inherently linked to the unpredictability of policyholder lifespans and broader economic conditions. Significant deviations from projected mortality rates could impact payouts and profitability, which is something potential investors should monitor closely.
ORLANDO, Fla., June 06, 2024 (GLOBE NEWSWIRE) -- Abacus Life, Inc. (NASDAQ: ABL) (“Abacus” or the “Company”), a pioneering alternative asset manager specializing in longevity and actuarial technology, announced today that it led the life settlement industry in funds paid to clients in 2023 with a
For 2023, the Company paid clients
Additionally, the Company acquired 640 policies in 2023 with a collective face value of nearly
“We are thrilled to be able to place
About Abacus
Abacus is a leading vertically integrated alternative asset manager and market maker, specializing in longevity and actuarial technology. The company is democratizing the life insurance space through three groundbreaking new channels: ABL Tech, ABL Wealth, and ABL Longevity Growth & Income Funds. Since 2004, Abacus has purchased life insurance policies from consumers seeking liquidity and has actively managed those policies over time (via trading, holding, and/or servicing). With over
Over the past 20 years, the company has built an institutionalized origination and portfolio management process that is supported by a 100+ person team, long-term relationships with 78 institutional partners and 30,000 financial advisors, and the ability to operate in 49 states. The Company complies with HIPAA and privacy laws to maintain and protect confidentiality of financial, health, and medical information. Abacus is also proud to be a BBB Accredited Business with an A+ rating.
Forward-Looking Statements
All statements in this press release (and oral statements made regarding the subjects of this press release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Abacus. Forward-looking information includes but is not limited to statements regarding: Abacus’s financial and operational outlook; Abacus’s operational and financial strategies, including planned growth initiatives and the benefits thereof, Abacus’s ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “expect,” “intend,” “anticipate,” “goals,” “prospects,” “will,” “would,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).
While Abacus believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the fact that Abacus’s loss reserves are bases on estimates and may be inadequate to cover its actual losses; the failure to properly price Abacus’s insurance policies; the geographic concentration of Abacus’s business; the cyclical nature of Abacus’s industry; the impact of regulation on Abacus’s business; the effects of competition on Abacus’s business; the failure of Abacus’s relationships with independent agencies; the failure to meet Abacus’s investment objectives; the inability to raise capital on favorable terms or at all; the effects of acts of terrorism; and the effectiveness of Abacus’s control environment, including the identification of control deficiencies.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Abacus with the U.S. Securities and Exchange Commission from time to time, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Abacus cautions you not to place undue reliance on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Abacus assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Abacus does not give any assurance that it will achieve its expectations.
Contact
Abacus Life Investor Relations
investors@abacuslife.com
Abacus Life Public Relations
press@abacuslife.com
FAQ
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