Madison Strategic Partners, an asset manager in the secondary life market, announced it has launched a longevity hedge product designed for investors in life insurance settlements.
The hedge is designed to reduce the impact of an insured’s longevity extending long past projected life expectancy, the company says.
“The hedge is available to both existing portfolio holders and new market entrants,” said Louis Kreisberg, CEO of Madison Strategic, New York. “It offers investors the ability to backstop longevity risk and increase the certainty of portfolio cash flows while utilizing a product that is issued by an extremely creditworthy counter-party.”
Madison’s product allows the asset owner to retain 100% ownership of the death benefit while also keeping the right to transfer the hedge if there is a future sale, he said.