To mitigate extension risk in life settlement portfolios

Risk Capital Partners (RCP) has structured longevity extension coverage in cooperation with an European P&C and Life carrier. The product addresses investor requirements to lock in a sum certain at a future maturity date.

The terms of the RCP LE product will offer flexibility to meet investor return requirements. The insured has the option at life expectancy + 1 or 2 years to transfer ownership of (or assign proceeds from) a life settlement policy to the insurer for a claim equal to some % of the face value of the life insurance policy.

RCP’s multi-disciplinary set of skills and expertise are tax and accounting related to insurance products, actuarial and underwriting for both life and property casualty non-traditional products, investment banking related to insurance securitisations and a keen ability to develop new risk transfer products that meet a pressing market condition on behalf of leading insurance providers.

Furthermore, a commitment of coverage can be procured prior to the actual binding of coverage, allowing investors to acquire policies after receiving assurance that LE coverage is available.