Marquee Financial Group, LLC Services

By: Marquee Fiduciary Advisors  09-12-2011
Keywords: Life Insurance, Life Insurance Portfolios

Portfolio Management and Servicing

Marquee Fiduciary Advisors, LLC (MFA) is a full service portfolio management advisor.  It provides services necessary to manage all aspects of each underlying policy in a portfolio to maximize portfolio returns while managing risk.

The services MFA provides are:

  • Premium Optimization

  • Policy contract analysis

  • Premium payments and reconciliations

  • Tracking of insured lives

  • Death claims presentment and management

  • Monthly portfolio "mark to market" valuation

  • Monthly portfolio reporting

MFA represents institutional investors in a sub-advisory, fiduciary capacity in managing life insurance portfolios. The company advises hedge funds, pension plans, charitable foundations, and private equite funds in constructing life insurance portfolios to meet the investment objectives of the fund.

MFA designed and implemented the MarqueeStar portfolio management system. MarqueeStar allows investors a password-protected web view of their entire portfolio and all underlying policy transactions in real time.  In addition, this system features monthly "mark to market" asset valuation so investors can review the portfolio's performance on a timely basis.

Historical Track Record:  Managed and serviced more than $600,000,000 in death benefits and successfully processed $54,000,000 in death claims.

Portfolio Analysis

MFA provides analytic and due diligence services to find managers who advise institutional buyers of life insurance policies held in portfolios under common ownership. Using a suite of proprietary life insurance policy analysis tools, the company assesses a portfolio in terms of financial values. Using its proprietary Fund Simulator it constructs appropriate cash flows and future secondary market valuations to create an objective risk/return scenario for prospective purchasers of portfolios of life insurance policies. Clients have used these services to solidify a trade, and in some instances to provide detailed, objective data to lenders as part of a loan collaterization using a portfolio of life insurance policies to support a project.

Services MFA provides in this area are:  

  • Pricing
  • Diversification criteria
  • Fund modeling, stress and sensitivity testing
  • Origination parameters
  • Life expectancy analysis and updating
  • Contestable and insurable interest "risk wrap" design and implementation

Individual Policy Acquisition and Origination

Life insurance policies acquired from seniors in the United States are an attractive, non-correlated asset for many large institutional investors worldwide. A portfolio of life insurance policies can be structured to meet a wide variety of investment needs. Structured more conservatively, a life insurance portfolio can have a default risk superior to AAA rated bonds.

Services we provide in this area include:

  • An automated online submission system

  • Pricing and valuation of policy submissions

  • Legal and financial due diligence

  • Preparation of all purchase documents

  • Management of the entire acquisition process

Historical Track Record: More than $850,000,000 in net death benefits purchased for more than $77,000,000

Portfolio Trading

In the last two years, MFA has reviewed and analyzed approximately $7 billion in portfolio net death benefits. The company's portfolio analysis and acquisition process follows a thorough due diligence methodology. When a client engages MFA in a portfolio trade project, MFA generally manages the portfolio on a going forward basis once the trade is complete.

Historical Track Record: More than $475,000,000 in net death benefits purchased in portfolios for more than $135,000,000.     

Due Diligence

MFA has been and will continue to be engaged with conducting economic and legal due diligence on individual policies inside portfolios. The results of MFA�s process have allowed our clients to properly negotiate purchases from sellers during the initial steps of acquisition. Following acceptance on essential terms and conditions, MFA provides advice on purchase and escrow agreements, and conducts individual policy due diligence as part of the escrow process.

For example, a client retained the company to perform portfolio analysis and policy due diligence. The portfolio was initially comprised of 102 policies that had been purchased as individual life settlements in 2003 and 2004. During the due diligence phase, MFA confirmed all relevant details and recommended acceptance of 92 policies. It also uncovered that the sellers made mistakes on their presentations and analysis on 10 of the policies. MFA analyzed, researched and corrected where possible each mistake. Of the 10 found items, 7 were corrected and included in the trade while 3 policies were rejected as agreed to by both buyers and sellers. The trade consequently went forward through escrow as all policy ownership and beneficiary changes were filed, processed and monitored. This portfolio is now under management at MFA.

Expert Witness Reports and Testimony

MFA has been engaged to analyze the suitability of life insurance policies managed by fiduciaries to meet the needs of their clients. Using its suite of proprietary tools and the knowledge and experience of its principals, MFA has provided written reports and testimony that is factual, analytically unique, compelling and therefore very useful in legal proceedings.  


The information in this article was current at 06 Dec 2011

Keywords: Life Insurance, Life Insurance Portfolios