Abacus Life Releases Annual Report

By Tamara Parker • Friday, March 22 10:16 • Permanent Link

Abacus Life, Inc. has recently released its 10-K report, providing a detailed insight into its financial condition and operations. Abacus Life, Inc. operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time through trading, holding, and servicing. The company was founded in 2004 and is based in Orlando, Florida.

The report provides a detailed breakdown of the company's revenues for the years ended December 31, 2023, and 2022. In 2023, the total revenues amounted to $66,401,451, a significant increase from the $44,713,552 reported in 2022. This increase was primarily driven by a substantial rise in active management revenue, which totaled $61,195,377 in 2023, compared to $43,242,580 in 2022. The report also outlines the company's cost of revenues, gross profit, and operating expenses, providing a comprehensive overview of its financial performance.

Furthermore, the report details the company's business model, highlighting that it generates revenue through active portfolio management, portfolio and policy servicing activities, and origination services. The company's active management revenue is derived from buying and selling policies, as well as from the receipt of death benefits proceeds on policies held when the insured dies. It also provides a wide range of services to owners and purchasers of life settlement assets, generating revenue by charging a base servicing fee of approximately 0.5% of the total asset value of the portfolio or a flat rate per policy. Additionally, as a life settlement provider, the company originates life insurance policy settlement contracts as a licensed life settlement provider on behalf of third-party institutional investors and for the company to invest in the life settlement asset class.

Following these announcements, the company's shares moved -2.0%, and are now trading at a price of $11.94. If you want to know more, read the company's complete 10-K report here.

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