Asian Markets Embrace Life Settlements as Uncorrelated Assets Gain Traction

Amidst a volatile financial year, Asian investors are turning to life settlements—buying U.S. life insurance policies at a discount—to diversify their portfolios. Abacus, an industry leader, sees expanding opportunities in Japan, Singapore, and Hong Kong SAR, aiming to meet growing demand for stable, market-independent returns.

In a financial landscape characterized by persistent volatility, Asian investors are increasingly seeking reliable returns through uncorrelated assets. Life settlements, a strategy that involves acquiring discounted U.S. life insurance policies and managing them until maturity, are gaining prominence in Asia as a credible option for risk diversification.

Globally, life settlements present a multi-trillion-dollar opportunity, driven by senior policyholders often unaware of better alternatives. Although established in the U.S. and Europe, this investment class is still in its infancy in Asia. However, sophisticated investors in the region are starting to recognize its potential for steady cash flows backed by reputable U.S. insurance firms.

Abacus, with nearly $3 billion in assets, is capitalizing on this trend by expanding its presence in Japan, Singapore, and Hong Kong SAR. Planning investor roadshows in these regions, the company aims to solidify its role as a strategic partner for Asian investors seeking stable growth amid market turbulence.

(With inputs from agencies.)