The life settlement industry is a rapidly growing marketplace with transaction volume estimated to reach $25 billion of face value in 2008, up from $1 billion in 2003. Investors are rapidly entering the marketplace to take advantage of the tremendous opportunity to invest in a new and growing asset class that offers attractive risk-adjusted investment returns that are uncorrelated to traditional investments. Q Capital is well-positioned in the marketplace to offer you a full suite of life settlement products and services to help you build your investment exposure to the asset. We understand your needs are complex and require individualized attention. At Q Capital, our efficient and transparent processes, unparalleled service and support, best offer first time approach, and industry expertise will minimize the complexities of the life settlement process from beginning to end.
Our outstanding reputation has been achieved by our unrivaled pursuit of excellence in dealing with financial advisors, life agents, institutional funders, life settlement brokers, and other intermediaries involved in the life settlement industry It is simple, we deliver on what we promise, the best execution in the industry.
We welcome the opportunity to form new and lasting partnerships with institutional investors based on integrity, professionalism, transparency, and results. The life settlement marketplace is a growing multi-billion dollar asset class that provides reliable and consistent returns uncorrelated to other traditional investments. Q Capital has a large and ever increasing distribution network for sourcing a consisitent supply of currently in-force life insurance policies for sale in the secondary market. The high volume of policies we evaluate allows us to be selective in the policies we purchase for you. In 2007 alone, we evaluated policies with more than $23.5 billion in face value. Our broad product exposure allows us to deliver diversified assets to your investors.
Q Capital utilizes a proprietary pricing model to ensure accurate policy pricing and premium optimization analyses. The pricing model can be customized to meet your specific needs (i.e., specific actuarial tables, improvement factors, etc.). Our goal is to help you achieve your stated investment return target. We maintain actuarial expertise to provide input data to help you implement and refine policy selection criteria. We retain the services of medical experts that can provide additional risk assessment and analysis on policies and specific underwriting questions. In addition, we have the expertise to value policy portfolios and how an individual policy has an impact on a portfolio. We welcome the opportunity to discuss with you the current and future opportunities that exist in this exciting market. Please call us or send us an email to inquire about what we can offer you, including:
- Origination programs
- Portfolio analysis
- Servicing/Asset Management
- Life tracking services
- Lending structures
Who Invests in Life Settlements?
Investors in life settlements are institutional investors of all types, including commercial and investment banks, hedge funds, close-ended and open-ended investment funds, pension funds, endowments, family offices, and private equity funds. Institutional investors are interested in life settlements as an asset class due to the attractive risk-adjusted investment returns and lack of correlation to traditional investments. Furthermore, the credit risk for a life settlement is minimal, considering that a highly rated insurance company is the ultimate creditor for the final payout.
Q Capital actively pursues the acquisition of individual life insurance policies and pools of life insurance policies. Each life insurance policy is different and thus requires a thorough review to enable a full understanding of its attributes and value. Q Capital has developed a proprietary method for analyzing and pricing life insurance policies. Each policy is reviewed by a company underwriter and run through Q Capital’s proprietary QUOTE system to determine an appropriate acquisition price. Once a medical profile is established on a policy, Q Capital’s software will run cash flow simulations to determine the value of the policy. In addition, Q Capital reviews the medical records and life insurance policy information to ensure no fraudulent information has been conveyed. Finally, Q Capital has established a legal “checklist” that is used to ensure the proper and accurate transfer of all policies will be affected at closing.
Management firmly believes that in order to receive the most accurate pricing the underwriting process should be seperated into two distinct procedures: actuarial analysis and medical analysis. On the actuarial front, QCS utilizes the actuarial tables that suits its funding partners and also makes available its own proprietary actuarial tables developed in conjunction with its independent actuaries. For medical analysis, Q Capital relies on the nationally recognized life expectancy firms and also has an outside consulting firm with two medical underwriters who can evaluate each qualified case for Q Capital and/or its clients. To marry the two underwriting processes, Q Capital developed its own pricing model (which is integrated into its proprietary QUOTE platform) that integrates the information and determines appropriate offer levels at a desired return target.
- Q Capital assists investors in life insurance policies with the administrative and asset management duties needed after the acquisition of a life insurance policy. This comprehensive service includes the paying of premiums, updating policy and medical information, tracking lives (by various methods), and policy collection.
- Portfolio management
- Premium optimization
- Premium payment remittance and verification
- Life status verification
- Annual policy reviews
- Policy mark-to-market
- Death claim processing
- Management of other owner employed vendors
Investors interested in learning more about the life settlement market and how to invest in life settlements should contact us.