Life Settlements Up Sharply in Index

The Amrita Life Settlement Index results in April showed a surprising turnaround from the previous month’s steep decline. The index climbed 92.8 points, from 324.6 to 417.4. The 28.6 percent rise was due to a sharp increase in market activity and renewed bullish expectations.

Surveys received from life settlement providers gave several indications of a strengthening secondary life insurance market. Providers reported a month over month increase in the number of cases in which they made offers. In addition, April also represented a spike in the amount of policies that were actually purchased.

While providers reported larger supply of policies entering the secondary market, the increase in buying activity was a significant factor in the index turning positive in April. Provider surveys pointed to increased competition among buyers for life insurance policies. Furthermore, respondents showed a bullish outlook for the life settlement market going forward.