Investment firm joins Goldman Sachs and NFP in Institutional Life Services. Richmond, Va.-based Genworth Financial is getting into the life-settlements business through its venture-investment subsidiary Senior Financial, which has taken a 10% stake in Institutional Life Services (ILS), a joint venture between Goldman Sachs and National Financial Partners.

Retirement income

Around 20% of life-insurance policies held by high-net-worth policy holders aged 65 or more have a market value above the cash values offered by their carriers, says industry sources. In response, secondary a market for these policies -- the life-settlement market -- has come into being.

The point of ILS, set for launch this quarter, is to create a "leading investment marketplace" for the settlement of life insurance polices, according to Genworth.

"This opportunity is an extension of our strategy to provide senior market consumers new products that provide liquidity, retirement income and enable their retirement safety net," says Senior Financial's CEO Cheryl Whaley. "Our involvement with ILS will allow Genworth to help set the market standard for compliant, transparent, consumer friendly life-settlement transactions." -FWR

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