Help is at hand
ClearLife offers a range of services to assist those involved in – or looking to become involved in – longevity markets:
Single Policy Valuation
Ahead of bringing a policy to the life settlements market, agents and brokers may wish to understand the value of the policy. We value the policy and provide a range of possible values which the policy may attract. We can also help to identify aspects of the policy which may
We help you to understand the complexities of a new market, or to improve upon policies and procedures you already have in place. We worked with a new life settlements fund to develop a methodology for valuation and performance measurement which would pass muster with their auditors – a leading international practice. We provided a written methodology, supported by models, to enable the fund to move forward with its fundraising plans.
Third Party Valuation
We provide an independent valuation for your portfolio of life settlements or mortgage loans. We agree valuation criteria with you and provide a periodic valuation report for your portfolio as and when required. We worked with a UK based pension fund to develop valuations for a small portfolio of life settlements before they were taken to market. The valuation project included an assessment of the documents surrounding each policy, which helped the fund to address shortcomings in the documentation before the policies were taken to market.
We work with you to design risk metrics for your asset portfolio and provide you with periodic analysis to determine compliance with those standards. We were contacted by a US-based life settlements fund which wanted to assess its maturity performance since inception across six different sub-funds ahead of a new fundraising programme. Timing was tight, with the final report required within three weeks. We worked with the fund to upload information on all of its policies into ClariNet; we then conducted an audit of key data points and worked with the fund to address exceptions. The final report provided an analysis of performance by reference to two different mortality metrics, for each individual fund and for the portfolio as a whole, and was delivered in sufficient time for the fund to incorporate the analysis into its marketing materials. Our performance led to us being re-engaged to update the analysis a few months later.
Not all ventures into the longevity markets end happily. We work with investors to build reports to senior management exploring the sequence of events which lead to misadventure; we then work with law firms to provide pre-litigation reports and, if required, expert witness reports and testimony. We were contacted by a large European pension fund which had seen several million dollars eroded from investments linked to life settlements. The investments had a derivatives overlay, so we were able to use our background in derivatives structuring to unpick the transactions and explain the course of events which had led to the sharp drop in value. We then worked with the fund to brief its external legal advisers in preparation for litigation. We have also worked with several US and European law firms to provide valuation reports and other services in connection with proposed and ongoing litigation.
Our background in asset management and securitization qualifies us to help you build debt structures around your asset portfolio, to help you secure long-term funding or to recycle capital. We can help with the initial design of debt structures and the monitoring of performance targets after execution.