Amrita Financial developed the Amrita Life Settlement Index to track life settlement demand and industry buying activity. On Feb. 2nd, 2010 at 10:00 AM PST, Amrita Financial released the inaugural results of the Amrita Life Settlement Index revealing data collected in January 2010. The Amrita Life Settlement Index improved from its benchmarked 500 points to 528.
Amrita Financial developed the Amrita Life Settlement Index to track life settlement demand and industry buying activity. On Feb. 2nd, 2010 at 10:00 AM PST, Amrita Financial released the inaugural results of the Amrita Life Settlement Index revealing data collected in January 2010. The Amrita Life Settlement Index improved from its benchmarked 500 points to 528. As many expected the life settlement industry continues to see a slight increase in demand as not only the overall economy improves, but also the balance sheets of institutional investors. Wide spread buying activity has not returned to 2007 and early 2008 levels. However, the results of this monthÔÇÖs modest index improvement point to continued increases in the buying appetites of institutional investors.
Much of the Amrita Life Settlement IndexÔÇÖs increase was due to a relative increase in individual life insurance settlement originations and renewed optimism from life settlement providers that the industry is rebounding. Both cases received and cases closed by life settlement providers inched up in January 2010 from December 2009. However, market activity and competitive influences were not enough to drastically affect pricing or buying parameters. The life settlement industry still seems to be focused on ÔÇ£a flight to qualityÔÇØ at discounted levels.
The results show a slight up tick in life settlement buying activity. This is consistent with anecdotal feedback from life settlement providers and funding sources themselves. A number of life settlement providers are reporting that their funding sources remain affected by liquidity issues and are continuing to sit on the sidelines. However, the vast majority of industry participants are bullish on the life settlement industry going forward in 2010.
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