Abacus Pays 11% More per Policy Than its
Closest Competitor
Abacus Settlements, LLC (d/b/a Abacus Life) and Longevity Market
Assets, LLC (together “Abacus” or the “Company”), a leading buyer
of life insurance policies and vertically integrated alternative
asset manager specializing in specialty insurance products,
announced today that according to financial publication The Deal,
the Company continued to expand its market share in the life
settlement industry and remained a leader in life settlement
payouts in 2022, bringing premier value to its clients. The Deal
report evaluates life settlement providers based on the number of
policies purchased and value.
For 2022, while the life settlement industry was down 9%
overall, Abacus grew 10%. Further, while Abacus was the second
largest buyer of life settlement policies in 2022, it paid over 19%
of policy face value to sellers on average, and over 10% higher
than its closest competitor.
“The Abacus team remains squarely focused on building on its
strong foundation to provide an extremely valuable financial
service and tool for our clients,” said Jay Jackson, CEO of Abacus
Life. “Thanks to our efforts, we were able to place $151 million
directly into our clients’ hands, which is an incredible value-add
for our clients considering the challenging economic environment.
We also remain excited to complete our business combination and
expect to soon be the first publicly traded life settlements
company.”
As previously announced on August 30, 2022, Abacus entered into
a definitive business combination agreement with East Resources
Acquisition Company (NASDAQ: ERES), a special purpose acquisition
company, that is expected to close on June 30, 2023 resulting in
Abacus becoming the first publicly listed life settlement company.
Completion of the business combination is subject to customary
closing conditions.
About Abacus
Abacus is a leading vertically integrated alternative asset
manager specializing in life insurance products. Since 2004, the
company has purchased life insurance policies from consumers
seeking liquidity and has actively managed those policies over time
(via trading, holding, and/or servicing). With over $2.9 billion in
face value of policies purchased, Abacus has helped thousands of
clients maximize the value of life insurance.
Over the past 18 years, the company has built an
institutionalized origination and portfolio management process that
is supported by an 83-person team, long-term relationships with 78
institutional partners and 30,000 financial advisors, and the
ability to operate in 49 states. The company has serviced
approximately $950 million in policies and has managed assets for
large asset managers and third-party investment funds.
Abacus’ leadership team averages 20+ years of experience and
have been innovators since the life settlements industry’s
inception in the mid-90s.
The company is a proud member of the Life Insurance Settlements
Association (LISA) and complies with HIPAA and privacy laws to
maintain and protect confidentiality of financial, health, and
medical information. Abacus is also proud to be a BBB Accredited
Business with an A+ rating.
www.Abacuslife.com
About East Resources Acquisition Company
East Resources Acquisition Company, led by Terrence M. Pegula,
is a blank check company formed for the purpose of entering into a
merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or similar business combination with one or more
businesses in North America.
Forward-Looking Statements
This communication contains certain forward-looking statements
within the meaning of the federal securities laws with respect to
the transaction, including statements regarding the anticipated
benefits of the transaction, the anticipated timing of the
transaction, the future financial condition and performance of
Abacus and expected financial impacts of the transaction (including
future revenue and pro forma enterprise value) and the platform and
markets and expected future growth and market opportunities of
Abacus. These forward-looking statements generally are identified
by the words "believe," "predict," "project," "expect,"
"anticipate," "estimate," "intend," "strategy," "future," "scales,"
"representative of," "valuation," "potential," "opportunity,"
"plan," "may," "should," "will," "would," "will be," "will
continue," "will likely result," and similar expressions or the
negatives of these terms or variations of them. Forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are inherently subject to risks and
uncertainties. These forward‐looking statements are provided for
illustrative purposes only and are not intended to serve as, and
must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are beyond ERES’s or
Abacus’s control, are difficult or impossible to predict and may
differ from assumptions. Many factors could cause actual future
events to differ materially from the forward-looking statements in
this communication, including but not limited to: (i) the risk that
the transaction may not be completed in a timely manner or at all,
which may adversely affect the price of ERES’s securities, (ii) the
risk that the transaction may not be completed by ERES’s business
combination deadline and the potential failure to obtain an
extension of the business combination deadline if sought by ERES,
(iii) the failure to satisfy the conditions to the consummation of
the transaction, including the requisite approvals of ERES’s
stockholders and Abacus’s owners, the satisfaction of the minimum
aggregate transaction proceeds amount following any redemptions by
ERES’s public stockholders and the receipt of certain governmental
and regulatory approvals, (iv) the lack of a third party valuation
in determining whether or not to pursue the transaction, (v) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement relating to
the transaction, (vi) the effect of the announcement or pendency of
the transaction on Abacus’s business or employee relationships,
operating results and business generally, (vii) the risk that the
transaction disrupts current plans and operations of Abacus, (viii)
the risk of difficulties in retaining employees of Abacus as a
result of the transaction, (ix) the outcome of any legal
proceedings that may be instituted against Abacus or against ERES
related to the merger agreement or the transaction, (x) the ability
to maintain the listing of ERES’s securities on a national
securities exchange, (xi) changes in the competitive industries in
which Abacus operate, variations in operating performance across
competitors, changes in laws and regulations affecting Abacus’s
business and changes in the combined capital structure, (xii) the
ability to implement business plans, forecasts, and other
expectations after the completion of the transaction, and the
ability to identify and realize additional opportunities, (xiii)
risks related to the uncertainty of Abacus’s projected financial
information, (xiv) current and future conditions in the global
economy, including as a result of the impact of the COVID-19
pandemic, (xv) the risk that demand for Abacus’s life settlement
and related offerings does not grow as expected, (xvi) the ability
of Abacus to retain existing customers and attract new customers,
(xvii) the potential inability of Abacus to manage growth
effectively, (xviii) the potential inability of Abacus to grow its
market share of the life settlement industry or to achieve
efficiencies regarding its operating model or other costs, (xix)
negative trends in the life settlement industry impacting the value
of life settlements, including increases to the premium costs of
life insurance policies, increased longevity of insureds, and
errors in the methodology and assumptions of life expectancy
reports, (xx) legal challenges by insurers relating to the validity
of the origination or assignment of certain life settlements, (xxi)
the enforceability of Abacus’s intellectual property rights,
including its trademarks and trade secrets, and the potential
infringement on the intellectual property rights of others, (xxii)
Abacus’s dependence on senior management and other key employees,
(xxiii) the risk of downturns and a changing regulatory landscape
in the industry in which Abacus operates, and (xxiv) costs related
to the transaction and the failure to realize anticipated benefits
of the transaction or to realize estimated pro forma results and
underlying assumptions, including with respect to estimated
stockholder redemptions. The foregoing list of factors is not
exhaustive.
Nothing in this communication should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should carefully consider the foregoing factors and the other risks
and uncertainties which will be more fully described in the "Risk
Factors" section of the proxy statement discussed below and other
documents filed by ERES from time to time with the SEC. These
filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers of this communication are cautioned not to put undue
reliance on forward-looking statements, and Abacus and ERES assume
no obligation and do not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. Neither Abacus nor ERES gives any
assurance that any of Abacus or ERES, or the combined company, will
achieve expectations.
Additional Information About the Proposed Transaction and
Where to Find It
This communication relates to the proposed transaction between
ERES and Abacus. In connection with the proposed transaction, ERES
has filed with the SEC a preliminary proxy statement on Schedule
14A (the "proxy statement"). ERES will also file other documents
regarding the transaction with the SEC. Before making any voting
decision, investors, security holders and other interested persons
of ERES and Abacus are urged to read the proxy statement (including
all amendments and supplements thereto), which is currently
available, and all other relevant documents filed or that will be
filed with the SEC in connection with the transaction as they
become available because they will contain important information
about the transaction. Investors, security holders and other
interested persons will be able to obtain free copies of the proxy
statement and all other relevant documents filed or that will be
filed with the SEC by ERES through the website maintained by the
SEC at www.sec.gov. The documents filed by ERES with the SEC also
may be obtained free of charge upon written request to ERES at 7777
NW Beacon Square Boulevard, Boca Raton, Florida.
Participants in the Solicitation
ERES, Abacus and their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from ERES stockholders in connection with the transaction.
A list of the names of such directors and executive officers and
information regarding their interests in the transaction are or
will be contained in the proxy statement. You can find more
information about ERES’s directors and executive officers in ERES’s
Annual Report on Form 10-K for the year ended December 31, 2021,
which ERES filed with the SEC on June 22, 2022. You may obtain free
copies of these documents as described in the preceding
paragraph.
No Offer or Solicitation
This communication does not constitute an offer to sell or
exchange, or the solicitation of an offer to buy or exchange any
securities, or a solicitation of any vote or approval, nor shall
there be any sale of securities in any jurisdiction in which such
offer, solicitation, sale, or exchange would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by
means of a prospectus meeting the requirements of section 10 of the
Securities Act of 1933, as amended, or an exemption therefrom.
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version on businesswire.com: https://www.businesswire.com/news/home/20230615916569/en/
East Resources Acquisition Company Investor Contact: Kelly
Seward info@eastresources.com Abacus Life Investor Relations
investors@abacuslife.com Abacus Life Public Relations
press@abacuslife.com
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