Life Settlement Index Recap - April, 2010 Data

The April 2010 Amrita Life Settlement Index results were released at 10:00 AM EST on May 4th. In 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% 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.