Abacus Life Inc. (ABLLW)

History and Background

Abacus Life, Inc. was founded in 2004 and is headquartered in Orlando, Florida. It is a specialty finance company focused on purchasing life insurance policies from seniors. It became a publicly traded company through a business combination with East Resources Acquisition Company in June 2023.

Core Business Areas

• Life Settlements: Abacus Life is a buyer, originator, and servicer of life settlements, which are life insurance policies purchased from individuals for a lump sum payment. They focus on acquiring policies, managing them, and eventually collecting the death benefit.

Leadership and Structure

Jay Jackson serves as the Chief Executive Officer. The company has a board of directors overseeing its operations.

Key Offerings

• Life Settlement Purchases: Abacus Life's primary product is the purchase of life insurance policies from individuals, providing immediate liquidity in exchange for the future death benefit. Market share data is difficult to pinpoint exactly, but Abacus is considered a large player in this fragmented market with significant market share. Competitors include GWG Holdings (in bankruptcy), Coventry First, and Lighthouse Life.

Industry Overview

The life settlement industry involves the purchase of existing life insurance policies from policyholders. It is a growing market driven by aging populations, increasing healthcare costs, and the desire for alternative financial solutions. The market is regulated at the state level.

Positioning

Abacus Life positions itself as a leading purchaser and servicer of life settlements. Their competitive advantage lies in their experience, capital base, and servicing platform, which enable them to efficiently manage and monetize life insurance policies.

Total Addressable Market (TAM)

The total addressable market for life settlements is estimated to be in the billions of dollars annually. Abacus Life is positioned to capture a significant portion of this market through its expertise and established network.

Key Competitors

• CODI
• LFC
• TSE:8793

Competitive Landscape

Abacus Life benefits from its size and scale, allowing it to compete effectively in the life settlement market. However, it faces competition from other established players and new entrants.

Longevity Market Assets, LLC

• Year: 2023
• Acquisition Price (USD millions): 32
• Strategic Rationale: The acquisition broadened Abacus's origination capabilities and expanded its access to life settlement policies.

Historical Growth: Historical growth has been substantial as the life settlement market expands. More specific growth rates are difficult to source. However, Abacus touts itself as a leader in the market.

Future Projections: Future growth is projected to be positive, driven by the aging population and increasing awareness of life settlements. Analyst estimates are not widely available.

Recent Initiatives: Abacus Life has focused on expanding its origination network and investing in technology to improve its operational efficiency.

Abacus Life is a leading player in the growing life settlement market, leveraging its expertise and platform to acquire and manage life insurance policies. While it faces regulatory and economic risks, the company is well-positioned to capitalize on the increasing demand for alternative financial solutions. Its future success depends on its ability to navigate the competitive landscape and manage its operational risks effectively. Abacus Life's strong capital position and leadership in the life settlement industry point towards positive growth, although interest rate sensitivity needs monitoring.

Data Sources:

• Company filings
• Company website
• Industry reports

Disclaimers:

This analysis is based on available information and should not be considered financial advice. Investment decisions should be made in consultation with a qualified financial advisor.