Abacus Life's CEO on Cracking the Code of Longevity Returns

Core Viewpoint - Abacus Life, Inc. is positioned as a unique player in the life insurance market, focusing on acquiring and managing undervalued life insurance policies, thereby creating investment opportunities for investors while educating consumers on the value of their policies [1][2][3]. Industry Overview - The life insurance industry is a $13 trillion market, presenting significant investment opportunities due to market inefficiencies, with 90% of policies not paying claims to beneficiaries [3][4]. - Many policyholders are unaware of the cash value in their policies, leading to lapses and forfeiture of financial resources, which Abacus Life capitalizes on by purchasing these undervalued policies [4]. Company Strategy - Abacus Life employs a data-driven approach to assess the market value of life insurance policies, utilizing proprietary actuarial technology and lifespan data [5][6]. - The company is the only publicly traded entity in its industry, providing transparency and investment opportunities for stakeholders [7]. - ABL Tech, Abacus Life's proprietary technology platform, enhances its service offerings by providing data-driven financial planning to institutions, creating additional revenue streams [8]. Financial Performance - Abacus Life has shown consistent growth with mid-teen year-over-year growth rates, a return on equity exceeding 18%, and profit margins over 50% [9][10]. - In Q3 FY2024, the company reported earnings per share of$ 0.20, surpassing estimates, and revenue of $28.15 million, exceeding expectations [10]. Market Outlook - The long-term growth prospects for Abacus Life are strong, driven by the large life insurance market and increasing awareness of life insurance as a liquid asset [12]. - The company's pro-consumer business model aligns with regulatory objectives, enhancing its market position [12]. - Abacus Life's focus on improving the quality of life for seniors adds a social impact dimension to its investment appeal [13].