Goldman Sachs has withdrawn further from the life settlements market, shutting down Longmore Capital, its life settlements provider, according to Investment News.

The move represents Goldman Sachs' full exit from the secondary life settlements market, a spokesperson for the firm was quoted as saying. The spokesperson said that the decision to shut down the life settlements provider was a “commercial decision.”

Ironically, the move comes at a time when there has been a flurry of interest in life settlements funds, which seek to profit by purchasing life policies from people who wish to cash them in early, such as to pay for the cost of dealing with a terminal illness.

“Basically, when we entered in 2006, we thought the life settlements market had the potential to grow into a large institutional market, but at the present time we don't see it growing beyond the size it has right now,” the spokesperson added.

Goldman's decision to shut down Longmore Capital arrives about a month after the investment bank's decision to shut down its QxX mortality index.

Launched in January 2008, the QxX index tracked the lives of 46,000 people over 65 with a primary impairment (other than AIDS or HIV).