Corry Capital Advisors
Vision. Integrity. Diligence.
New York | Pittsburgh | Luxembourg | Dublin
Corry Capital Advisors is an investment advisor that focuses on managing assets utilizing a life settlement strategy.
Corry Capital Advisors, LLC (CCA) was founded in 2006. CCA specializes in providing investment management to investors seeking uncorrelated returns in the Life Settlement asset class. CCA invests in non-contestable Life Insurance policies and utilizes a proprietary methodology to target consistent returns based on actuarial predictability.
CCA’s senior management team has over 25 years of experience in financial services with a focus in the life insurance and life settlement industries. CCA’s investors include Public Pension Funds, Taft Hartley Pension Plans, and Family Offices. CCA provides transparency to its investors with an audited track record, calculated independently by a third-party administration firm and policies held in custody. Realized gains are from policy maturities or by trading policies in the tertiary market. CCA prides itself on compliance, efficiency, and transparency of their policy underwriting processes.
Corry Capital Advisors, LLC (CCA), a Delaware limited liability company, is registered as an investment adviser under the Investment Advisers Act of 1940, amended. Additional information about Corry Capital Advisors, LLC is available on the SEC’s website.
Life Settlement Industry Overview
A life settlement is the sale of an existing life insurance policy for more than its cash surrender value but less than its net death benefit to a third party. A life settlement focuses on policies insuring older individuals, typically 65 or over, with life expectancies of at least two years.
In the United States, there is a total of $17 trillion in existing life insurance policies; currently persons over age 70 hold in excess of $257 billion in Whole Life insurance, over $370 billion in Universal Life, and over $60 billion in Variable Universal Life.* The majority of life settlement transactions involve the sale of Universal Life (UL) or flexible premium life policies. Since the introduction of Universal Life policies in the 1980s, this form of life insurance has become extremely common and widely available, and many of these policies are now being offered for sale in the life settlement market.
Structurally, the market is divided between the secondary and tertiary markets. Secondary market transactions are conducted through licensed life settlement providers and sold to investors and funding sources. The tertiary market refers to the market where investors buy and sell existing life settlements after the initial purchase of the life settlement policy is complete.
Those selling their policies are typically either elderly individuals who have outgrown the need for their policies or businesses that no longer want to own policies. The demand side of the life settlement after-market (those buying the policies) is typically made up of large financial institutions (banks, insurance companies, pension plans, etc.) that recognize the potentially high yields life settlement investments can offer. More recently, high net worth investors are buying individual life insurance policies or investing in pools of policies. A life settlement transaction can be mutually beneficial for both the seller and the buyer. The seller is able to sell the policy for more than the cash surrender value offered by his or her life insurance company, and the buyer is able to purchase an investment vehicle with an attractive potential rate of return.
Regulatory usage of the terms “viatical settlement” and “life settlement” varies by state. The industry generally uses the term “viatical settlement” to refer to instances where the insured is terminally ill with a life expectancy of less than two years. CCA engages in life settlements, rather than viatical settlements, as its principal focus.
*Conning Life Settlements, 2014, 72.