Insurance Settlement Valuation
Analyze and value a portfolio of insurance settlements with variable cash flows and attached optionality, for the structured settlements investments team at a hedge fund. Our client was evaluating whether to acquire the portfolio and analyzing the potential payouts.
- Combine data from the insurance servicer with both internal proprietary research and demographic information in the public domain
- Determine future cash flows with associated probabilities, and identify all attached optionality and calculate option values
- Visualize drivers of value through traditional charts and new data visualization techniques
Provide transparency into the underlying settlement and the ability to independently value the portfolio
Quickly test scenarios by changing assumptions, parameters, and data sets
Online tools enabled the hedge fund to both use the analytics internally and easily collaborate with partners and investors