Abacus Global Management (ABL) Conference Transcript

Summary of Abacus Global Management (ABL) Conference Call Company Overview - Company: Abacus Global Management (ABL) - Industry: Life Settlements and Alternative Asset Management - Public Listing: NASDAQ since July 2023 - Key Participants: Robert Phillips (SVP, Investor Relations), David Jackson (IR Associate - Capital Markets) Core Business and Value Proposition - Business Model: Abacus specializes in life settlements, acquiring life insurance policies from owners and placing them with institutional investors [5][7] - Market Size: The U.S. has $13 trillion in life insurance policies, with 90% lapsing, indicating a significant opportunity for life settlements [9][44] - Target Demographic: Typically, policy owners are aged 65 or older, having owned their policies for over 20 years [10] - Financial Metrics: - Revenue growth exceeding 20% - Return on Equity (ROE) above 15% - Margins exceeding 50% [7] Financial Performance - Q3 Revenue: $29.1 million, slightly up from $28.1 million in Q2, with stable EBITDA [15][16] - Capital Deployment: $93.2 million in Q3 and $104.7 million in Q2 for acquiring policies [18] - Policy Originations: Expected to exceed 750 by the end of 2024 [18] Market Dynamics - Institutional Interest: Increased participation from institutional investors is seen as a tailwind, enhancing competition for life settlements and improving market health [22][39] - Carrier Buybacks: Insurers are increasingly looking to offload policies, which Abacus can acquire and manage effectively [19][20][21] Growth Initiatives - Direct-to-Consumer Channel: Generates 12,000 leads monthly, with a focus on financial planning and wealth management [26][29] - ABL Tech: A data tracking service for mortality, recently signed a contract with CalSTRS, the largest teachers' pension plan in the U.S. [31][32] - Acquisitions: Recent acquisitions of FCF Advisors and Carlisle Asset Management to enhance direct allocation to life settlements [30] Competitive Landscape - Competitors: Coventry is noted as a private competitor, but Abacus is the only public company in this space [37][38] - Market Position: Abacus leverages 30 years of experience and a strong network to maintain a competitive edge [39] Marketing Strategy - Advertising Channels: Primarily utilizes traditional media (TV and radio) to drive leads, particularly targeting audiences on Bloomberg, Fox Business, and CNBC [49][52] - Lead Generation: The majority of leads come from traditional advertising, with digital efforts being secondary [52] Conclusion - Overall Assessment: Abacus Life presents a compelling investment opportunity with a strong growth trajectory, high margins, and a unique position in the life settlements market, supported by increasing institutional interest and effective marketing strategies [33]