- Advertisement -
- Advertisement -

Related

Ress Life Rotates Portfolio to Capitalize on Repricing

Industry Report

- Advertisement -

Discount rates in the U.S. life settlement market have increased in recent years, reflecting a shift in supply-demand dynamics. Higher interest rates have made traditional fixed-income investments more attractive, while inflation, higher living costs and economic uncertainty appear to have prompted more policyholders to sell their insurance policies in the secondary market. This combination has led to more attractive pricing for life insurance policies, creating a compelling opportunity for active managers such as Ress Life Investments.

To capitalize on this opportunity, Ress Life Investments has agreed to sell the majority of its existing portfolio at a price corresponding to net asset value. The divestment will be executed in quarterly tranches through the end of Q3 2026, with proceeds reinvested in newly acquired policies offering higher expected returns. “The background to the transaction is the current market opportunity of selectively buying polices at higher internal rates of return,” explains Hanna Persson, Head of Sales at Ress Capital. “Discount rates in the life settlement market have increased over the last two to three years and we believe this trend will continue in the coming 15 months.”

“The background to the transaction is the current market opportunity of selectively buying polices at higher internal rates of return.”

Hanna Persson, Head of Sales at Ress Capital.

The higher-rate environment and ongoing economic uncertainty have contributed to this repricing. While increased yields have made life settlements relatively less attractive compared to other asset classes, the corresponding pressure on policyholders – through inflation and rising living costs – has driven more people to sell their policies. This increase in supply has pushed discount rates higher, enabling buyers to secure more attractive entry points. “As an active manager, we saw an opportunity to protect the current portfolio’s value while freeing up capital to reinvest at more attractive return levels,” Persson adds.

“As an active manager, we saw an opportunity to protect the current portfolio’s value while freeing up capital to reinvest at more attractive return levels.”

Hanna Persson, Head of Sales at Ress Capital.

Ress Life Investments, which targets a net annual return of 7 percent in U.S. dollars, has delivered an annualized return of 5.9 percent over both the past five and ten years. With the portfolio rotation strategy now underway, the fund aims to gradually raise its target return to 8-10 percent in U.S. dollars. “The predefined sale structure allows us to reinvest proceeds as each tranche is completed, avoiding the need to maintain a large liquidity buffer,” says Persson.

Ress Life Investments is an alternative investment fund specializing in life settlements –acquiring life insurance policies from policyholders who no longer want or need them. Managed by a five-person investment team, the fund seeks to exploit pricing inefficiencies in the life settlement market, aiming to build a diversified, positively skewed, and uncorrelated return stream by aggregating individual policies with attractive risk-reward profiles.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Beyond Renewables: Coeli Fund Taps Into the Broader Electrification Race

Earlier this year, portfolio managers Vidar Kalvoy and Joel Etzler renamed their fund from Coeli Renewable Opportunities to Coeli Energy Opportunities – a move...

Three Danish Hedge Funds Recognized by the Hedge Fund Journal

Three Danish hedge funds have been recognized at the 2025 Hedge Fund Journal CTA and Discretionary Trader Awards. Two funds managed by Danske Bank...

Private Equity in Transition: Challenges and Opportunities

Private equity has matured into a mainstream – if not cornerstone – allocation for institutional investors. Following years of record fundraising and valuation expansion,...

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Chelonia Select Builds on Solid 2024

Stock-picking hedge fund Chelonia Select is off to a strong start in 2025 with an 8.3 percent gain through the end of May, building...

CABA Capital Expands the Flex Series

Danish fixed-income boutique CABA Capital has launched the third vintage of its leveraged, closed-end fixed income strategy: CABA Flex3. The fund aims to deliver...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.