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March 14, 2006 at 04:18 PM
Advanced Settlements Inc. might have a 15% share of the U.S. life settlement market.
John Nadel, an analyst at Fox-Pitt, Kelton, New York, gives that estimate in a discussion of Advanced Settlements, a life settlement firm, and its corporate parent, National Financial Partners Corp., New York.
The typical fee structure in a life settlement transaction is based on either 6% of the face amount of the policy settled or about 33% of the amount of the life settlement proceeds in excess of the cash surrender value, Nadel writes in the note, which is based on a meeting with NFP executives.
In a typical case, about 33% of the fees go to the life settlement broker and the rest to the policy seller’s agent, Nadel writes.
