Industry numbers show growing life settlement market

The life settlement market has shown consistent expansion, with 2022 demonstrating a strong rebound after a brief COVID induced slowdown in 2021, according to data obtained from The Deal.

According to The Life Settlements Report industry study, the life settlement market has shown consistent growth over the past five years, with 2022 marking a significant rebound.

The statistics reveal the following trends in market volume:

• 2017: $2.8 billion face amount / 2,027 policies
• 2018: $3.8 billion face amount / 2,587 policies
• 2019: $4.4 billion face amount / 2,878 policies
• 2020: $4.6 billion face amount / 3,241 policies
• 2021: $3.9 billion face amount / 2,937 policies
• 2022: $4.5 billion face amount / 3,057 policies

Life settlement market rebound in 2022

The market data from the study based on information obtained through public records requests to state insurance departments, highlights the following key market insights:

• Coventry First LLC emerged as the top buyer in 2022 (representing 52% of the entire market), followed by Abacus Settlements LLC, Life Equity LLC, and Maple Life Financial Inc.
• A total of 3,057 policies with a face value of $4.5 billion were purchased in the secondary market in 2022, compared to 2,937 policies with approximately $4 billion in face value in 2021.

The total amount paid for those policies increased to $823.6 million in 2022, compared to $715.01 million in 2021.

According to Chris Orestis, president of Retirement Genius and a long time industry veteran, “consumer and advisor awareness of life settlements are at all-time highs driven by heavy advertising on par with Medicare Advantage and Reverse Mortgages.”

He predicts that 2023 should be the biggest year in life settlement history with a great deal of upside for the years ahead. “Baby Boomers start turning 80 in 2025, and the need for more resources to address the unique financial challenges of retirement and long-term care is nothing but wind in the sails of the life settlement industry.”