Secondary Life Asset Management Services

Transcription

1 Secondary Life Asset Management Services In a class of its own Policy Acquisition Actuarial and Fund Reporting Policy Servicing Fund Structuring Industry Leaders and Innovators

2 SL Investment Management Secondary Life Asset Management Services In a class of its own Expertise Through Experience Our core business is Life Settlements and if we ve been labelled a bit precious about what we do, that s because we are. Our specialists are just that: specialists. And their experience and knowledge of managing US Life Settlements is impressive. Our people relish the detail and they thrive on the analysis. Contents Page 3 Dedicated Service & Product Management 4 The SL Difference 5 The SL Service Model & Software 6-7 SL Trading Team 8-9 SL Actuarial Team SL Servicing Team 12 SL Fund Structuring Team 13 Delivering Service Excellence: The SL Approach 14 Our Heritage and Expertise Industry Leaders and Innovators

3 Servicing Capabilities from a leader in Secondary Life Asset Management Dedicated Service At SL Investment Management, managing Life Settlement policies is about more than simply holding and administering assets for clients. Although that may be the approach of some service providers, for SL that s simply not enough. This stems from our passion about both the asset class and our approach to managing clients interests. For more than 20 years, we ve been quietly building a reputation as a traded life policy asset manager whose business is built on the knowledge and skills of our specialist teams and solid professional judgement and standards. During this time, we have applied our knowledge of the asset class to build formidable servicing capabilities that run from simple policy acquisition through to asset valuation and full fund structuring and management. Comprehensive Product Management To reflect the requirements of our clients, our services range from stand-alone policy acquisition and servicing through to asset valuation and full fund structuring and management. For complete flexibility, we can offer each of our service components independently or together with other elements. So for clients with their own portfolios we can offer a full policy management service. For clients with a wider servicing remit including asset acquisition through to delivering investment returns, we can offer our actuarial asset valuation, fund creation and management expertise. SL Investment Management 3

4 SL Investment Management Why Choose SL? At SL we re a bit of a rare breed. We ve reviewed our fellow secondary life asset providers. We ve sought companies who, like us, combine end-to-end policy acquisition and servicing functions but who also offer solid in-house actuarial expertise coupled with the necessary legal experience and capabilities. We offer either pre-existing fund structures, or the ability to create bespoke investment companies for clients. What we have discovered is that no other provider in the secondary life asset sector delivers the breadth and depth of the services that we offer. Complete Secondary Life Asset Management Servicing Capabilities At SL, we are not just able to buy policies for our clients; we administer and manage them through the full term. We then go on to apply our actuarial expertise to model and value assets in order to deliver investor returns. Furthermore, our Fund Structuring Team can design and build fund structures or companies for clients all over the world, in a way that responds to investor objectives and philosophies. To date, our search identified that no other company offers the complete solution and this is why SL Investment Services now focuses on providing a fully comprehensive service offering, underpinned by our dedication and the expertise of our people. So, whether you are looking to buy, build, service or create a Life Settlement portfolio, we d be delighted to help you achieve your goals. 4

5 The SL Servicing Model In support of our policy acquisition, servicing and fund structuring capabilities is SL s actuarial asset valuation expertise. Policy Acquisition Actuarial and Fund Management Policy Servicing Fund Structuring Bespoke Software At SL it s not just our people who are specialists. Our systems have been designed specifically to manage Life Settlement policies. Our controls have been developed into a workflow system which runs on the world class APPIAN system solution. This allows us to deliver a comprehensive service which ensures that policies are properly administered in line with the requirements of policy owners. A key benefit of our system capabilities is the processing efficiencies that allow us to deliver a fully rounded service at a competitive price. Couple this cutting-edge I.T. capability and team-based knowledge with SL s highly controlled, robust policy servicing, and you can be confident that your Life Settlement policies are in very safe hands. SL Investment Management 5

6 SL Investment Management SL Trading Team Policy Trading and Due Diligence Effective policy acquisition is not just a case of locating suitable Life Settlement policies. Our experienced team manage the whole policy acquisition process from policy sourcing, price negotiation, due diligence process, title transfer and acquisition, through to arranging tertiary sales for our clients. Our trained staff are experienced in managing relationships with various US counterparties including: suppliers, legal counsel, administrators and custodians. Our team aim to deliver complete policy transparency for clients. This ensures that clients are fully aware of features of the policy such as term-out provisions and that these are fully considered prior to purchase. This minimises risk and allows clients an informed view of their assets. This commitment and system capability is backed up by a rigorous 100+ point checklist, alongside developed US legal firms and our own Actuarial Services Team, using our knowledge and extensive experience to maximise client protection. Our Trading Team can: Negotiate purchase and sale agreements with trading counterparties Provide suppliers with a web-based instant pricing feedback facility Negotiate price with suppliers of policies Administer purchases and sales from offer to completion Carry out stringent due diligence on policy packages Prepare sales packages for tertiary sales Manage bidding and auction process for tertiary sales 6

7 Secure web submissions Our web-based submission portal, with premium optimisation tool and automated pricing system delivers almost real time pricing turnaround. Additionally, SL s intelligent IRR system evaluates each policy to determine the pricing level, applying risk premiums and discounts based on several policy characteristics that can be easily adjusted to specific client preferences. Sourcing, bidding and negotiation SL has an accomplished in-house Trading Team with an extensive knowledge of Life Settlements and access to both the secondary and tertiary markets. A wide network of supplier relationships enables excellent market coverage and SL s highly skilled negotiators ensure that policies can be traded both individually and in large batches, using SL systems and experience to achieve the best prices possible. SL only deals with reputable regulated firms with competitive fee structures. Purchase due diligence Our 100+ point checklist ensures that all policies are valued on the correct policy information, that the buyer will receive full unencumbered title and that the policy is able to be sold in the future. Our checklist procedure is thorough; initial checking procedures are turned around within just one business day with a secondary check performed within two business days. Title change Change forms are submitted to Carriers within two business days following completion of due diligence. Regular contact is made with the Carrier throughout title change. Telephone verification of coverage call is undertaken immediately following confirmation of title change and is reviewed and signed off by the Actuarial Services Team. Final review and payment Escrow is funded within one business day following completion of due diligence and usually has a three stage sign-off process. Conditions of payment are: receipt of written confirmation from the Carrier that owner and beneficiary has been transferred, sign-off by the Actuarial Services Team of a Telephone Verification of Coverage and confirmation from the Sub Custodian that they are in receipt of the necessary policy documentation. Payments are made within 72 hours and include a four stage sign-off process for added security. Policy sales SL uses its numerous market counterparties to obtain the best prices possible for policy sales. We analyse policies to ensure that they are most attractive to buyers in the prevailing market conditions. The selected cases are then sent to the most aggressive buyers at the time and the auction process is carefully managed to ensure the best price to deliver client benefit. Portfolio Audit For existing Life Settlement portfolio owners, we can offer a thorough and comprehensive due diligence based audit. The results of the audit can help the owner prepare to dispose of their assets should they wish, or can provide assurance that the policies were sourced to an acceptable market standard. SL Investment Management 7

8 SL Investment Management The SL Actuarial Team Actuarial and Fund Reporting Services Being able to buy the right policies through our Trading Team and service those policies through our Servicing Team is vital to ensure that clients interests are protected. However, at SL, our service to clients goes much further. As the only known Secondary Life Asset Manager with its own in-house Actuarial Team, SL have an unrivalled ability to provide a fully rounded service to clients in an industry where asset valuation is at the heart of delivering investor returns. In-House Actuarial Expertise Our in-house Actuarial Team and experienced supporting staff apply their professional expertise to deliver vital asset valuation services. The team s modelling and reporting capabilities coupled with bespoke software allows clients to make informed decisions that achieve their investment objectives. The Actuarial Team expertise is unsurpassed in the UK LS & TEP (Traded Endowment Policy) markets and our team members deliver knowledge-based expertise in fund modelling & projections, scenario testing, generation of pricing criteria and portfolio asset valuations. The team employs a number of bespoke software packages devised to value and model Life Settlement policies. 8

9 Our Actuarial Team can provide the following services to our clients: Criteria advice Price and valuation verification and calculation services Actuarial due diligence on policy packages during purchase Premium optimisation Asset valuation Portfolio reporting services Cash flow projection modelling and reporting Mortality analysis Specialist Software for Actuaries and Risk Professionals To fully complement our actuarial capabilities, we use proprietary software packages designed and built in MoSes a modelling development environment licensed from Towers Watson, designed for use by actuaries and risk professionals in representing complex models. This allows us to overcome the risks and dangers in using existing off-the-shelf Life Settlement packages for more complex models which do not adequately reflect varying features of all policy types and charging structures. SL Investment Management 9

10 SL Investment Management The SL Servicing Team Policy Servicing Once policies have been acquired, it is vital that there are robust servicing procedures in place. Whether that is for clients who look to SL to service their own portfolios, or for clients where SL has acquired and are managing the portfolio. Our Policy Servicing Team deliver vital policy management processes to protect the value of the policies that they service. They liaise with US service providers to perform essential auditing, tracking and premium management functions to ensure that policies remain in force. Rather than use off-the-shelf systems, SL s specially designed software delivers robust portfolio management capabilities, which when combined with the well developed relationships between the Policy Servicing Team and service providers, delivers a powerful servicing function. Additionally, our in-house proprietary I.T. systems and excellent relationships with US Insurance Carriers enable us to perform these functions with the utmost efficiency and accuracy. Our Fund Administration Team liaise with US service providers to offer: Optimisation and management of ongoing premium payments Policy and premium reconciliation services Management accounting Audit support Maintenance of dynamic policy data Mortality tracking Medical and Life Expectancy updating Mortality searches Maturity claim management 10

11 Premium payments and reconciliation A full premium payment, monitoring and reconciliation service is provided. Receipt of each premium payment is confirmed via phone to the Carrier. SL has bought and managed almost 2000 cases with no policy lapses. Document management SL handles the collection and collation of annual statements and other pertinent documentation. Policy amendments and maintenance are dealt with and regular cash value checks performed. Mortality tracking US-based tracking agents ensure quarterly contact with the insured and/or representatives. Regular obituary, SSN and SmallWorld searches aid prompt identification of maturities. We have an average death to discovery rate of three to five business days which facilitates rapid processing. Our experienced team and streamlined operating procedures ensure both costs and timescales are kept to a minimum. Medical record and Life Expectancy report retrieval SL arranges the retrieval of updated medical records for insured lives, followed by the ordering of life expectancy reports from any of the major medical underwriters. Maturity claims Ensuring investor interests are protected, SL has a flawless record of processing maturity claims totalling $185m with a claim success rate of 100% for clients. SL Investment Management 11

12 SL Investment Management The SL Fund Structuring Team Creation of Investment Funds or Companies In an increasingly globalised marketplace, it is important for life settlement investors to select an experienced partner which has the necessary expertise to deliver appropriate solutions in a cost-effective manner. Our Fund Structuring capability has proven experience in understanding a wide range of investor requirements, coupled with well-established relationships with third party legal and structuring agents, to deliver attractive investment solutions incorporating tax and regulatory guidance, enabling investors to access attractive low-correlated returns in the life settlement space. Established in 1990 and regulated by the Financial Conduct Authority, SL has experience in establishing and managing fund structures in USA, London, Dublin, Luxembourg, and Channel Islands, and currently manages and advises upon assets of US$1.3bn. UK Regulated As a Financial Conduct Authority regulated MiFID authorised firm, we apply rigorous standards to our fund management and advisory capabilities to ensure we operate in line with the expectations of the UK financial services regulator. Furthermore, as a full service provider, supported by bespoke and highly experienced personnel, clients can benefit from a level of expertise and management capability that are second to none. Investment Professional Expertise In addition to our Life Settlement Management servicing options, SL has a team of investment professionals whose expertise is supported by regular or same-day reporting capabilities delivering real value-added services to our clients. Activities provided by the team include: dedicated Client Account and Relationship Management, bespoke client reporting, audit support services, treasury functions, currency hedging, cash and bond management and investment of reserves in treasuries and other secure investments. 12

13 Service Professional Integrity Respect Improve Teamwork Delivering Service Excellence: The SL Approach In order to deliver the best possible service to clients and to ensure effective and efficient internal practices, our staff use the company S.P.I.R.I.T. values to define their working approach. By aspiring to display excellence in the following aspects of their daily working approach: Service, Professionalism, Integrity, Respect, Improvement and Teamwork, the SL approach drives a solid behavioural framework that helps to deliver service excellence to our clients. Quarterly nominations and awards for staff who excel in one or more of the SPIRIT values help to embed a SPIRIT of excellence of which SL are proud. SL Investment Management 13

14 SL Investment Management Our Heritage Since inception, we ve analysed and reviewed over 500,000* policies with a cumulative face value of approximately $120bn. Being highly selective, we have purchased around $4.35bn in policies and have then ensured policies have remained in force with premiums paid throughout the term. Since 2003 we have managed, advised or bought policies for ten US Life Settlement Funds. These have held more than 1,892 policies with a face value of over $3.25bn. Throughout this time, we have ensured that 100% of the maturity proceeds have been collected for our investors. SL Investment Management key facts Over 500,000 policies analysed Over 50,000 policies purchased Over $4.35 billion of face value acquired $1.5 billion invested At SL, we aim to deliver a full range of servicing solutions. For clients seeking to create or build on existing portfolios, our trading team is fully equipped to manage all aspects of policy acquisition. Alternatively, for clients with existing managed portfolios, our experienced servicing team deliver vital policy management processes to protect asset value. Each are supported by SL s in-house Actuarial team who deliver essential policy and portfolio valuation services. Finally, to compliment our asset management services, clients are also able to access the expertise of our Fund Structuring team who bring experience in creating and building funds globally to meet investor requirements thus delivering a complete 360 degree servicing model. PAUL SANDS Chief Executive, SL Investment Management Ltd. To find out more visit: Featured in For further information on Secondary Life Asset Management Services call one of our specialists on +44 (0) *Includes Life Settlements and Traded Endowment Policies. 14

15 Visit us online at or call +44(0) for further information on any of our Secondary Life Asset Management Services Industry Leaders and Innovators SL Investment Management Ltd is Authorised and Regulated by the Financial Conduct Authority. SL Investment Management Ltd is a registered company in England and Wales. Registered at 8-11 Grosvenor Court, Foregate Street, Chester, CH1 1HG, UK. Registered no Content intended for Professional clients only. Investments in Life Settlements are speculative and as with all investments involve risks. No assurance can be given that the target return will be achieved and actual returns may vary materially. Figures are correct at time of printing.