US life settlements market in recovery

After suffering a big setback
in 2008 and 2009, the US life settlements market is recovering
steadily, indicates an index compiled by life settlements broking
firm Amrita.

According to Amrita, the
index is based on a monthly survey of industry participants across
the US and, similar to consumer confidence index, is designed to
measure life settlement demand and attitudes.

Specifically, opinions on
current activities and life settlement market conditions make up
85.71% of the index while expectations of future buying demand
comprise the remaining 14.29%.

The index was developed in
2009, with December 2009 as the benchmark equalling 500.

The index began 2010 on a
weak note, reaching a low of 325 in March. A recovery started in
April and was followed by small setbacks in June and July before
beginning a four-month steady rise which took the index to 739.6 in
November.

According to research firm
Conning, activity in the life settlements market reached an
all-time high in 2007 when policies with an estimated face value of
$12.2bn were traded.

Conning estimated that
activity fell to $11.8bn in 2008 and $8bn in 2009. The face value
of inforce life settlements stood at some $36bn at the end of
2009.

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