Experience
Prior to Q4 2008 the investor market was dominated by large institutions with structured finance strategies.
The team’s transactional experience commenced in 2004 with the design, management, and servicing of asset origination programs as well as the creation of insurance platforms
The team has deep experience in creating and managing insurance platforms, life asset funds, and longevity- linked transactions.
$830M
2004-2005
Program structurer and JV partner in $830M insurance acquisition program
$250M
2005
Program structurer and JV partner in $250M insurance acquisition program
$4.4M
2005
Portfolio Manager and JV partner in $4.4B insurance acquisition program
$350M
2005-2006
Joint venture partner in $350M insurance acquisition program
$3.6B
2006-2008
Program structurer of $3.6B insurance financing program
$1B
2007-2010
Program servicer and manager of $1B SLS platform
$3B
2011-2022
Creation of insurance platform and management of $3.0B+ of life assets
$50M
2020-2022
Creation of $50M open ended life settlement fund
NexPoint Insurance Solutions
Institutional Longevity Products and Solutions
NexPoint Insurance Solutions
NexPoint Insurance Solutions, L.P. (“NIS”) is a registered investment advisor managing approximately $150mm in unique alternative investment strategies for institutional clients through tax efficient products.
25+ Years
NIS is in the “Nex” Family of Companies. Our investment activities are a part of a sophisticated, multibillion-dollar platform. We draw on investment partners with 25+ years of experience managing a range of investment-grade, non-investment grade, structured products, and alternative assets for a diverse investor base.
Spiritus Life, Inc.
At Spiritus, our goal is to provide the best experience for our clients, We aim to be transparent throughout the entirety of the process so our clients feel heard, valued and receive the maximum value for their assets. We are committed to keeping the process simple and honest ensuring our clients’ interests are at the core of every decision.
Mindful Approach
We are committed to our clients and their desired financial outcomes. At every step of the process, are client’s interests remain top-of-mind and are at the center of everything we do.
Proven Outcomes
Comprised of a team of industry pioneers and over 20 years of life settlement experience, we have learned the most effective and efficient ways to navigate the life settlement industry. Because of our tenured history, we can achieve the best outcomes for our clients.
Confidence in Process
Navigating the life settlement process can be difficult. At Spiritus, we make ourselves available to our clients to answer any and all questions so they feel confident in our team, the process, and the services we provide.
Life Settlement Investment Rationale
Life Insurance is a product for retail customers and is sold in a competitive marketplace
The brokerage model allows brokers to source the cheapest product from a variety of issuers, creating significant competition
As a result of this competitive market and the retail nature of the product, educated investors can exploit the resulting pricing inefficiencies inherent in the product
Lapse Support |
In order to offer more competitive pricing and make insurance as accessible as possible, insurance companies can price products assuming a given ratio of policy holders will lapse the coverage before maturity |
Competitive Pricing |
Insurance companies often price aggressively in order to gain market share in a particular segment. In other cases, companies can make pricing errors in given segments that the brokerage model tends to exploit |
Underwriting Support |
Historically insurance companies have offered their brokers special underwriting. Underwriting concessions and “Table-Shaving” allow placement of superior product on sub-standard risks |
Health Changes |
Life insurance companies do not differentiate between risks once a policy is issued. However, investors can focus selection on only those risks whose health has deteriorated substantially since issue |
Underwriting Arbitrage |
The brokerage model also leads to concentration of risk by insurance companies on impairments or factors where their underwriting may be more relaxed than their competitors |
Enhanced Credit |
Life insurance claims represent the senior most position in the capital structure of an insurance company and regulators govern both the amount of reserves they must make for claims paying and the nature and risk of investments they can make |
Overview of Life Settlement Risks
The key to successful investments is a deep understanding of the underlying asset and its inherent risks. Life Settlements expose the investor to a variety of risks, which require consideration and understanding when selecting polices for investments.
RISK |
DESCRIPTION |
| Specific Longevity Risk | The risk that any one individual will live longer than expected and its impact on portfolio return |
| Systemic Longevity Risk | The risk that longevity risk is misestimated on a systemic, portfolio basis |
| Carrier Credit Risk | The risk that the issuing insurance company will be unable to pay the death benefit due to insolvency |
| Legal Risk | The risk that the investor will not receive the death benefit due to a legal challenge from either the issuing insurance company or the family or estate of the insured |
| Cost of Insurance Risk | The risk that the issuing insurance company will increase the cost of insurance and therefore increasing the premiums required to keep the policy in force |
| Adverse Selection Risk | The risk that the investor is delivered poor assets by market participants exploiting weaknesses in investment criteria or asymmetric availability of information |