FORT WASHINGTON, Pennsylvania, June 11, 2013 /PRNewswire/ -- London Business School announced yesterday the publication of powerful new research confirming the benefits of life settlements to both policyowners and investors. The study was based on data relating to more than 9,000 settled policies from Coventry, the leader in the life settlement industry, and prepared by Professor of Finance, Narayan Naik.
Alan Buerger, Coventry's CEO, commented, "As the leading provider in the market, Coventry was uniquely placed to share with London Business School the largest, most statistically significant, single-source dataset of settled policies ever assembled in the industry's 15-year history."
The data represented all policies with complete records purchased as life settlements from their original owners by Coventry First between 2001 and 2011. Ernst & Young contributed to the study by helping support the process of confirming the completeness and accuracy of the data.
The study found that the policyowners in the sample collectively received $3.11 billion from the sale of their policies, more than four times the amount they would have received had they surrendered them to their life insurance companies. The report also highlights two recent trends – policyowners retaining a share in the benefits of their policies and a move towards smaller policies – supporting the fact that life settlements are a socially-responsible, welfare-improving industry.
Alan Buerger further commented, "We were pleased to be able to provide the data for this project and were impressed with the rigorous nature of the research. The market is maturing and its participants are rightly demanding objective, independent research on which to base their decision-making. With increased regulation, substantial mortality experience and very attractive expected yields, the investment story has never been more compelling."
To read or obtain a copy of the study, please visit www.coventry.com/LifeSettlementStudyLBS.
Coventry created the secondary market for life insurance. By uniquely bridging insurance and capital markets, the company pioneered the life settlement industry and opened a new class of longevity-based assets for institutional investors worldwide. Today, Coventry is a global financial services firm leading the development of a robust longevity market. www.coventry.com.