Houlihan Lokey Bullish on Life Insurance Secondary Market

A recent publication from the investment bank Houlihan Lokey highlights growing interest among institutional investors in the life insurance secondary market: The Evolution of an Asset Class.

As Houlihan Lokey puts it: “What was once an obscure and somewhat unconventional investment thesis has matured into a robust alternative asset class,” the company wrote in a white paper on the life insurance secondary market. “Just as retirees can tap their home equity with a reverse mortgage, they can also access the equity built up in their life insurance policies by selling them to investors. This simple transaction…has become the seed of a rapidly maturing asset class that has attracted some of the world’s most sophisticated alternative investment platforms.”

Houlihan Lokey is a leading investment banking team for advising on and monetizing investments in this space. Over the past nine years, the company has completed more than a dozen portfolio transactions with an value of more than $12 billion and it advised on a total of 9,600 policies valued at nearly $33 billion.

This is great to see, not only because I lead an organization whose thesis has been to develop and support this market, but because seniors of America deserve a robust development of this market in order to help meet their post-retirement economic needs.

Businesses can serve a greater purpose – and the secondary life insurance industry stands to make a dramatic difference in the lives of our senior population. Our company sees the impact it makes on the clients we serve every day.

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