The Secondary Market for Life Insurance Expanding Rapidly; Coventry First Tops $2 Billion in Life Insurance Policies Acquired.Business Editors FORT WASHINGTON Fort Washington, military post during the American Revolution, situated on the highest point of Manhattan island, New York City, overlooking the Hudson River opposite Fort Lee, N.J. , Pa.--(BUSINESS WIRE)--March 10, 2004 Coventry First, the creator of the secondary market for life insurance, today announced the company has acquired more than $2 billion in life insurance policies (estimated face value) since November 2001. Company officials point to the $2 billion milestone as evidence of the growing recognition of the secondary market for life insurance throughout the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. The secondary market provides a competitive marketplace where consumers can realize fair market value for their unneeded or underperforming life insurance. By 2007, the company expects the size of this secondary market to surpass $45 billion. Coventry First pioneered the secondary market for life insurance by bridging the insurance and capital markets. With the development of innovative products such as Life Settlements, SWAPP SWAPP Surface Wave Processes Program (Settlement with a Paid-up Policy Paid-up policy A life insurance policy in which all premiums that are due have been paid. ), and Variable Annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. Rescue, Coventry First has attracted institutional capital from leading investment firms, according to Coventry First CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Co-founder Alan H. Buerger. "By connecting capital and insurance markets, we have given financial professionals new financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against options, and consumers greater flexibility in managing their assets," says Buerger. "Exceeding the $2 billion mark, with $1 billion of those acquisitions completed in the past 10 months, reflects a market that is clearly taking off." Coventry transactions have enabled policyowners to receive more than $240 million over cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. for their unwanted life insurance policies. Industry observers are taking note of the consumer benefits of the secondary market. In an article entitled "The Benefits of a Secondary Market for Life Insurance," published by the American Bar Association American Bar Association (ABA), voluntary organization of lawyers admitted to the bar of any state. Founded (1878) largely through the efforts of the Connecticut Bar Association, it is devoted to improving the administration of justice, seeking uniformity of law (Real Property, Probate & Trust Journal, Fall, 2003), the authors concluded that the secondary market for life insurance is both pro-competitive and pro-consumer. The article reports that by allowing institutional investors to compete for unwanted or unneeded life insurance products, the secondary market has generated greater consumer choice, a wider range of products, and favorable valuations for consumers. "We now have a new asset class," says Buerger. "We see no end in sight to the dramatic growth of this market as financial advisors introduce this concept to their clients. And as they do, consumers are increasingly responding by exercising their right to receive market value for their assets." About Coventry First Coventry First bridges insurance and capital markets to create groundbreaking products for the financial services industry. The company created the secondary market for life insurance and pioneered the resulting life settlement industry. Fueled by bold ideas, a deep understanding of life insurance, and impeccable ethical standards, Coventry First continues to lead the market by opening new opportunities for consumers and the financial professionals who serve them. Based in Fort Washington, PA, Coventry First was named the 12th fastest-growing privately owned company in Inc. magazine's 2003 ranking of the 500 fastest-growing private companies in the U.S. |
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