Phoenix enters life insurance settlements biz

Phoenix Cos. Inc. today announced its foray into the life settlements industry as the first insurance carrier to buy unwanted policies. Working through Phoenix Life Solutions, the Harford, Conn.-based carrier will align with four brokerage general agencies to originate life settlements or to purchase policies for an immediate cash settlement. The brokerage agencies are: Advanced Planning Services of San Diego; American Brokerage Services of Wyndmoor, Pa.; Ash Brokerage in Fort Wayne, Ind.; and Madison Brokerage of Morristown, N.J. The minimum policy size to get involved is $500,000, and Phoenix is the only investor the company represents. Transparency for clients gives the company a competitive edge against other policy bidders, said Frank Gencarelli, executive vice president of Phoenix Life Solutions. "What's often been talked about is that if the insurance company owns the policy it's a natural hedge against the core risk," he observed. If expectancies lengthened, underwriters benefit, and if they shorten, it's good for the life settlement providers, he added. "Most people point to the natural hedge life settlements present as an investment," Mr. Gencarelli said. "We see it as an opportunity to get in front of the life settlement movement. It's a market that can't be stopped."