Investment Strategy

Next-gen portfolio strategy designed for alpha with zero beta.

Sea Point Capital combines life settlements, collateralized loans, and payout annuities — designed to deliver returns driven by diversified mortality risk, with low correlation to traditional markets.

Three Complementary Assets

Each asset class serves a distinct role in the portfolio, with offsetting risks and cashflow profiles that combine to produce stable, uncorrelated returns.

Life
Settlements

50%
Role
Capital appreciation engine
Duration
3-8 years
Cashflow Profile
Pay premiums → Receive death benefits

We purchase life insurance policies from insureds, pay monthly premiums, and receive death benefits when mortality events occur. Most months are small losses, with intermittent large gains — a pattern that produces step-wise returns when combined with complementary assets.

Learn more about Life Settlements

Collateralized Loans

25%
Role
Steady accretion and liquidity
Duration
1–3 years
Cashflow Profile
Monthly accretion → Bullet payoff

We provide collateralized term loans to other life settlement funds. These loans accrue interest monthly and pay off principal plus interest within a defined window, providing steady returns and periodic liquidity events.

Learn more about Collateralized Loans

Payout
Annuities

25%
Role
Cashflow generating asset
Duration
5–10 years
Cashflow Profile
Steady monthly payments

We purchase immediate payout annuities (SPIAs) from insurance carriers, receiving level monthly payments. These provide steady cashflow to help fund Life Settlement premiums while offering opposite mortality exposure for portfolio balance.

Learn more about Payout Annuities

Why This Portfolio Works

Strategic allocation engineered for offsetting risks, self-funding mechanics, and natural liquidity.

Offsetting Mortality Exposures

Life Settlements benefit when people die sooner (longevity risk), while Annuities benefit when they live longer (mortality risk). This natural hedge is designed to dampen overall risk profile by combining offsetting mortality exposures.

Self-Funding Engine

Monthly annuity payments help fund Life Settlement premiums, reducing cash drag and improving capital efficiency. The portfolio generates its own operating cashflow rather than requiring external capital calls.

Natural Liquidity Events

Life Settlement maturities and loan payoffs create periodic liquidity events. Rather than relying solely on secondary market sales, the portfolio generates natural liquidity through the asset lifecycle.

Step-Wise Return Pattern

Shallow monthly drawdowns punctuated by chunky gains are characteristic of this asset combination, with low correlation to traditional markets.

Monthly Cashflow Profile

Illustrative sample showing the shape of monthly cashflow patterns across asset types and how they combine in a portfolio context.

Life Settlements
Loans
Annuity
Cumulative P/L
Life Settlements
Small monthly premium costs, punctuated by large gains when mortality events occur
Loans
Steady monthly accretion with periodic bullet payoffs within expected windows
Annuities
Predictable monthly cashflow supporting Life Settlement premium payments

Important — Illustrative Only: This chart depicts hypothetical, simplified sample data and does not represent the performance or cashflows of any actual Sea Point Capital fund or investor account. Hypothetical results have inherent limitations and do not reflect actual trading. Actual portfolio cashflows, timing, and returns will vary materially. Past performance is not indicative of future results.

AI-Driven Mortality Risk Analysis

Proprietary, non-technical AI that enhances our ability to identify mispriced policies and generate alpha.

How Our AI System Works

1
AI-Enhanced Underwriting
Our proprietary system reviews independent Life Expectancy (LE) reports and redacted medical records to form an in-house mortality view.
2
Discovering Value
By systematically analyzing medical data, we identify mispriced policies where the insured's longevity is overestimated by the market.
3
Investment Precision
Our AI systems augment human expertise to ensure we only bid on policies with superior risk-adjusted return potential (<3% of policies reviewed).

Competitive Edge: Our AI enables us to identify and acquire undervalued policies, providing a unique source of alpha in an increasingly competitive market. Model architecture and training data are proprietary.

AI System Schematic (Simplified)

Redacted
Medical Records
Actuarial
Tables
Independent
LE Report
AI Medical Underwriter
AI Reviewing Agent
AI Life Expectancy Report
AI Life Expectancy Review
AI Bidding Strategy Decision
BID
NO BID

System designed to produce <10% bid decisions

Structural Alpha in an Uncorrelated Strategy

Proprietary Alpha Source

Our proprietary AI system enables us to identify and acquire undervalued policies, providing a unique competitive edge in policy selection and pricing.

Zero Beta Exposure

Life insurance assets are structurally uncorrelated with equity, credit, and macroeconomic cycles. Returns are generally driven by mortality outcomes, not market movements.

Active Risk Management

Beyond acquiring assets, we actively manage the portfolio to exploit market opportunities and protect downside.

Opportunistic Sales

We actively monitor secondary market pricing and sell policies when market dislocations create attractive exits, crystallizing gains ahead of maturity.

Tax-Aware Management

Portfolio decisions consider tax implications for investors, optimizing the timing of gains and losses to enhance after-tax returns.

Premium Optimization

We work with servicing agents to optimize premium payments, ensuring policies remain in force at minimum cost while avoiding lapse risk.

Independent Valuation

Monthly policy values calculated by an independent valuation agent using market data and actuarial inputs. Annual audit by an independent accounting firm.

Stress Testing

Regular scenario analysis and stress testing across mortality, liquidity, and market dislocation scenarios to ensure portfolio resilience.

Institutional Controls

Independent fund administrator oversight, securities intermediary custody, comprehensive audit trail, and Code of Conduct compliance.

Sourcing & Industry Relationships

Decades of market experience and extensive industry relationships enable consistent deal flow.

Deep Sourcing Network

We have extensive industry relationships with licensed intermediaries and longstanding policy sources; our sourcing provides consistent, high-quality deal flow. We only acquire policies through licensed intermediaries and adhere to all regulatory requirements. Our sourcing process emphasizes ethical standards, regulatory compliance, and proper documentation at every step.

Regulatory Compliance & Ethics

  • All life settlement transactions comply with applicable state and federal regulations.
  • We work exclusively with licensed life settlement brokers and providers.
  • Proper insurable interest and voluntary policyholder participation are verified for all transactions.
  • Full transparency and disclosure to policyholders as required by law.
  • Comprehensive Code of Conduct and Compliance manual covering all business operations.

Understanding Risk & Liquidity

Mortality risk is distinct from market risk. Our portfolio is structured to balance longevity and mortality exposures while maintaining periodic liquidity through maturities and loan payoffs.

Mortality Risk vs Market Risk

Traditional investments carry market risk — exposure to economic cycles, interest rates, credit spreads, and equity volatility. Life insurance assets carry mortality risk — the uncertainty around when insured individuals will pass away.

These risks are structurally uncorrelated. Mortality outcomes are generally driven by biological and actuarial factors, not economic cycles, interest rates, or equity market conditions. This structural independence is a key characteristic of life-insurance-linked assets as portfolio diversifiers.

Liquidity Profile

Life insurance assets are inherently illiquid, and fund terms reflect this. Investor terms — including any lock-up, redemption, and liquidity provisions — are detailed in the offering documents.

Natural Liquidity: Life settlement maturities and loan payoffs provide periodic liquidity events through the natural lifecycle of assets, without relying on secondary market sales.

Risk Disclosure: Life-insurance-linked investments involve significant risks, including longevity risk, premium obligations, carrier insolvency, model and valuation risk, and liquidity constraints. These investments are suitable only for investors who can afford the loss of their entire investment. A comprehensive description of risk factors is provided to prospective investors in the offering documents. See our Legal & Disclosures page for a high-level summary of key risk categories.

Engage With Sea Point

Sea Point Capital works with qualified investors and their advisors who are interested in insurance-linked investment strategies. Schedule a call to learn more about our approach.

Questions? Contact us at info@seapoint.capital