Coventry, the creator of the secondary market for life insurance, once again ranks first for life settlements in 2022 by both number and value, according to financial publication The Deal.
Abacus was the second largest buyer of life settlement policies in 2022.
Tables published by The Deal are a comprehensive review of secondary market life settlement transactions. Coventry companies have held the top spot each year since the rankings were first published in 2013.
Coventry and its affiliate, Life Equity, bought more than 1,500 policies in 2022––over three times as many policies as its closest competitor, and more than 52% of all life settlement transactions. Coventry also led the league tables by value and total investment, purchasing more than $1.9 billion in policies.
“The remarkable success we continue to have is evidence of the dedication of our talented team and our commitment to helping life insurance policyowners. We’re proud of the fact that Coventry has helped thousands of seniors improve their lives, providing more than $5 billion to those who no longer have a need for their policies,” said Reid Buerger, CEO of Coventry.
As the leading buyer of life insurance policies, as well as the largest provider of education to financial advisors and policyowners, Coventry works to raise awareness that life insurance is a valuable asset and that policy appraisals are an integral part of financial planning.
The Deal revealed that while the life settlement industry was down 9% overall, Abacus grew 10%. Further, while Abacus was the second largest buyer of life settlement policies in 2022, it paid over 19% of policy face value to sellers on average, and over 10% higher than its closest competitor.
“The Abacus team remains squarely focused on building on its strong foundation to provide an extremely valuable financial service and tool for our clients,” said Jay Jackson, CEO of Abacus Life. “Thanks to our efforts, we were able to place $151 million directly into our clients’ hands, which is an incredible value-add for our clients considering the challenging economic environment. We also remain excited to complete our business combination and expect to soon be the first publicly traded life settlements company.”
As previously announced in August 2022, Abacus entered into a definitive business combination agreement with East Resources Acquisition Company, a special purpose acquisition company, that is expected to close on June 30, 2023 resulting in Abacus becoming the first publicly listed life settlement company.
