Conning Research: Annual Life Settlement Volume Rises to $6.1 Billion in 2006

Life Settlements Market Driven by Increasing Capital and Investor Demand

Hartford, CT, October 9, 2007 – From virtually no activity a decade ago, investment managers are raising capital on a global scale to invest in the new asset of life settlements. The result is an increasing number and value of life insurance settlements to meet growing capital demands, according to a new study by Conning Research and Consulting, Inc.

“We estimate that $6.1 billion in face amount was transferred in 2006, up from $5.5 billion in 2005. It’s all about investor demand in the life settlement market right now,” said Scott Hawkins, analyst at Conning Research & Consulting. “The current limits on life settlement market growth have much more to do with policy availability and consumer education than with provider capacity.”

The Conning Research study, “Life Settlement Market: Increasing Capital and Investor Demand” identifies the growth drivers and limitations in the market and explores the infrastructure supporting life settlement investors. It goes further to explore the emerging impact of this growing segment on the U.S. life insurance market.

“We anticipate growth of about $1 billion in additional life settlement transaction volume per year for the foreseeable future,” said Stephan Christiansen, director of research at Conning Research. “In seeking that growth, life settlements investors will need to be mindful of ‘criteria creep’ in candidate policies and resulting stress on profitability. On the life insurer side, as those annual transactions accumulate, the impact on in force business becomes a more significant profitability issue for the insurer.”

“Life Settlement Market: Increasing Capital and Investor Demand” is available for purchase from Conning Research & Consulting, by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting, Inc.

Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.