Life Settlement Index Recap - April 2011 Data

The April 2011, Amrita Life Settlement Index hit a new high last month. Results were reported on Tuesday May 2nd at 10:00 AM EST and showed a continued strengthening of the USA's secondary life insurance market. The index posted an 8.6% increase from 851.6 points the previous month. The 73 point increase to 924.6 was due to improving indicators across a majority of survey categories.

While most life settlement providers reported no changes in the amount of cases they received, a minority observed an increase. However, a greater percentage of providers reported a rise in offers tendered than reported an increase in case submissions. Respondents were almost evenly split when they indicated the number of cases closed. While case submissions were increasing slightly and offers were being given at an increasing rate, not all responding providers were enjoying higher closure rates.

More offers and fewer closings suggest an increasingly competitive life settlement market for buyers. This is further evidenced by some life settlement providers noting a widening of buying parameters and lowering of target IRR's.

Looking forward, most survey respondents were either unsure of future buying changes or foresaw a steady appetite for life insurance policies on the secondary market.