Average Life Broken Down by Geography
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