Laureola Advisors expands presence in Australia – Life Insurance – Insurance News
Laureola Advisors expands its presence in Australia
May 16, 2022
Life facilities fund manager Laureola Advisors is stepping up its presence in Australia, two years after launching a “soft entry”.
The firm says it has opened an office in Sydney at Martin Place and Nathan Wares has joined as MD Australia and New Zealand.
Mr. Wares has over 25 years of experience in fund management, investment banking, capital markets and private banking, including as a director of Westpac and St George Private Bank, managing portfolios of people and very wealthy clients.
Laureola Advisors director John Swallow said Mr Wares was a “welcome” appointment for the US-based specialist asset manager, which focuses exclusively on life settlements, building on its initial discussions in Australia with investors and family offices.
“No other asset in the current market is uncorrelated to the broader financial markets and we expect strong interest from super funds, institutions and cashed-out SMSFs looking for alternative defensive assets,” said Mr. Swallow.
He says a life settlement describes the transaction where an insured person sells a life insurance policy to an investor for cash, with the investor assuming the obligation to pay the premiums on the policy and collect the death benefit when the insured eventually dies.
The legal basis for this was confirmed by a US Supreme Court decision in 1911 and the life insurance market is well established in the United States, he said.
Laureola Advisors says that life settlement funds pay policyholders three or four times the amount offered by the issuing life insurance company to redeem the policy.
“A well-structured life insurance settlements fund that derives its returns from expirations rather than artificial accounting gains should generate positive returns in all market conditions,” says Laureola Advisors.