Sundance Strategies SUND

Sundance Strategies, Inc. focuses on acquiring life insurance policies and residual interests in such policies, including notes, drafts, acceptances, and other obligations representing part or all of the sales price of insurance, known as net insurance benefits. The company also provides professional advisory services to structured finance groups, bond issuers, and life settlement aggregators, assisting with the selection and structuring of life insurance backed bond offerings. Its operations are primarily within the life settlements and structured finance sectors.

The company generates revenue primarily through its holdings of net insurance benefits, which entitle it to a share of the proceeds from the maturity of underlying life insurance policies after all associated expenses have been paid. Additionally, it earns fees for professional structuring and advisory services, including reimbursement of costs incurred in preparing bond offerings, an advisory fee upon the closing of any bond transaction, and residual interests in the assets once the bond is retired. These two streams constitute the company's source of income.

Sundance Strategies operates in a competitive life settlements market that includes hedge funds, investment banks, secured lenders, specialty life insurance finance companies, and life insurance companies themselves, many of which have greater financial resources and lower costs of funds. The company’s limited scale restricts its ability to bid for large policy pools, putting it at a disadvantage relative to larger players such as Berkshire Hathaway, which acquired a $300 million face value portfolio in 2013. Despite these challenges, the firm seeks to differentiate itself through its expertise in structuring insurance linked securities and its advisory capabilities for structured finance transactions.

The company’s advisory services are provided to specialty structured finance groups, bond issuers, life settlement aggregators, and other participants in the insurance linked securities market. Its net insurance benefit interests are derived from portfolios of life insurance policies held by third party owners, whose policies underlie the cash flows that the company receives.