Investing Basics: Annuities & Structured Settlements

What are structured settlements and annuities, and how do they complement a portfolio of life settlement investments? Listen in as our Director of Portfolio Management, Jeff Black, CAIA, provides the basics.

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Jeff Black, Director of Portfolio Management, AIR Asset Management.

Hi, I am Jeff Black, the Director of Portfolio Management at AIR Asset Management. In my position, I oversee the construction, implementation, and risk management of our firm's investments.

Structured settlements and annuities are financial instruments designed to provide a guaranteed stream of income over a specific period.  

• A structured settlement typically arises from a legal case where periodic payments are made to the recipient instead of a lump sum.

• An annuity, on the other hand, is a contract between an individual and an insurance company. It involves the individual investing a sum of money and receiving regular payments in return.

When investing in structured settlements and annuities, investors can expect several key benefits, including positive cash flow, mortality hedge and longevity protection, and independent liquidity.

At AIR Asset Management, we have extensive experience in managing annuity portfolios since 2019. Our strong relationships with counterparties and service providers in the life settlements industry complement our structured settlements business. These established connections allow us to source and trade with trusted partners and leverage our existing network. Furthermore, the similarities between life settlements and structured settlements enable us to apply our expertise effectively in both areas.