Abacus Global Management, Inc. · NYSE:ABX
Abacus Global Management — Abacus Life — Q3 2023 Earnings Presentation
33 slides from Abacus Global Management's earnings presentation, Nov 20, 2023
Slide 1: 3Q 2023 Important Note to Investors
3Q 2023 IMPORTANT NOTE TO INVESTORS: On or about November 14, 2023 a document titled “Abacus Life Q3 Board Presentation November 9, 2023” (the “Disclaimed Document”) entered the public domain. The Company advises investors not to rely upon the Disclaimed Document or any information contained therein
Slide 2: Disclaimer
Disclaimer General. This presentation (this “Presentation”) is provided solely for informational purposes. This Presentation is subject to update, completion, revision, verification and further amendment. None of Abacus Life, Inc. (the “Company”) or its affiliates has authorized anyone to provide in
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Net Income, a non-GAAP measure, is defined as net income (loss) attributable to Abacus adjusted for non-controlling interest income, amortization, change in fair value of warrants and non-cash stock-based compensation and the related tax effect of those adjust
Slide 4: Abacus Life – ABL Board
Abacus Life – ABL Board 4 Jay Jackson Michiel van KatwijkKarla Radka Thomas W. Corbett Jr.Adam Gusky Chairman DirectorDirector DirectorDirector ASSET MANAGEMENT Abacus Life CEO with 25+ years longevity asset experience Built multiple origination & platform providers in longevity asset management and
Slide 5: 3rd Quarter Review
10-Q 3rd Quarter Review 5 Increased staff by 10% ABL Bond Issuance Process 2023E Adjusted EBITDA Range 35M-41M Adjusted 3Q Financials non cash amortizations ABL Longevity Growth & Income Fund filed N-2 Financials Overview (3rd Quarter – July - Sept 2023) Gross Revenue $21.1 million Adj. EBITDA $10.8
Slide 6: Company Highlights
Company Highlights Growth Company in an Essentially Uncorrelated Alternative Asset Class with a Large TAM, Institutional Investment Grade CounterpartiesI Abacus is a leading alternative investment originator and asset managerII 19 consecutive years of positive net incomeIII Proprietary Longevity Tec
Slide 7: Overview of Abacus Life (ABL)
Overview of Abacus Life (ABL) Using Lifespan and Longevity data as a core foundation - Abacus has 3 business verticals. 7 fully integrated Advisor, Agent and consumer facing secondary market origination platform Actively managed originations held for investment and serviced with support from valuati
Slide 8: Life Insurance Acquisition & Management
Life Insurance Acquisition & Management
Slide 9: Overview of Abacus Life – Life Insurance Acquisition
Source: Market share data per The Deal and based on value of settlements paid in 2021. 1. Includes policies originated, owned, and / or serviced by Abacus through June 2023 Overview of Abacus Life – Life Insurance Acquisition We have built a leading vertically integrated alternative asset manager sp
Slide 10: Life Settlement Market Opportunity
Sources: Life Insurance Industry per the American Council of Life Insurers Annual Report (2020). American Real Estate Industry per the MSCI – Real Estate Market Size report (2021 / 2022). Percent of insurance policies that do not pay claims per the Life Settlement Insights (Observations and Commenta
Slide 11: Historical Risk Adjusted Returns Relative to Other Asset Classes
Abacus Russell 2000 S&P 500HY Bonds US Bonds Senior Loans Treasury 0% 5% 10% 15% 20% 25% 30% 35% 0% 5% 10% 15% 20% 25% 30% Standard Deviation Abacus Abacus’ Historical Risk Adjusted Returns Relative to Other Asset Classes 2 Source: Policy Cash Value Over Time chart based on a $1 million death benefi
Slide 12: Abacus is at the Heart of the Life Settlements Industry
Source: Market share data per The Deal and based on number of settlements provided from 2017 – 2022. Note: All portfolio trading performance metrics measured from 2019 through 2023. Abacus is at the Heart of the Life Settlements Industry Capital Providers Origination Machine Agents DTC Brokers Hold
Slide 13: Origination Machine with a Model to Drive Economics
Note: LS abbreviation denotes “Life Settlement”. ORIGINATION MACHINE with a Model to Drive Economics Agents Work with LS providers on behalf of clients DTC Advertising via internet, social media platforms, television, and mail LS Brokers Largely pre-packaged policies for bidding 38% Policies Origina
Slide 14: Outstanding Operations & Execution Team
Outstanding Operations & Execution Team 14 Policy Acquisition ABL Wealth ABL Tech 90 Team Members • 30 – Sales Team • 18 – Acquisition Managers & Case Processors • 16 – Contracts, In-House Counsel, and Accounting • 6 – Marketing and IT • 15 - Trading, Analysts, Servicing • 5 -Executive 8 Team Member
Slide 15: ABL Wealth
-Q- -eo-6- ABACUS LIFE KNOW THE VALUE OF YOUR LIFE ABL Wealth
Slide 16: Aggregated Historical Track Record
Aggregated Historical Track Record 16 Traded Portfolio Held Portfolio Realized Portfolio 121 Policies Acquired $101mm Total Face Value $835k Average Face Value 160% Realized Return 1,312 Policies Traded $2.5bn Total Face Value $1.9mm Average Face Value 20.3% Realized Return 1. Construct policy tranc
Slide 17: ABL Longevity Growth and Income Fund
This slide is for illustrative purposes only. The launch, operation and success of the Fund is subject to significant risks and uncertainties, including SEC approval, Company’s ability to manage the Fund, the ability to attract investors, ability to acquire and manage Fund assets and the ability to
Slide 18: ABL Wealth Advisors
ABL Wealth Advisors 18 Aligned with 80BN RIA for back office and Advisor growth Experienced team to manage operations Will Receive ABL Non-Qualified Leads Offer custom financial solutions using Lifespan as the core driver of portfolio allocation Acquire strategic RIAs and Advisors
Slide 19: The Power of Data & Tech: ABL Technologies
The Power of Data & Tech: ABL Technologies (abltech.com)
Slide 20: Policy Purchase Examples
Purchase Price Policy Type Carrier Rating Lead Source Policy Face Value Expected IRR Life Expectancy (LE) LE Extension Ratio Age Age on LE Date Age on B/E Date Surv Prob on B/E Date Risk Grade $151,500 GUL A+ Broker $500,000 15.60% 65 196% 72 80 90 0% 1 $150,180 UL A Agent $250,000 15.50% 25 614% 67
Slide 21: ABL Tech: Abacus Marketplace and Blockchain Integration
ABL Tech: Abacus Marketplace and Blockchain Integration 21 Origination Flow Lead Management Centralized Bidding and Servicing Remove Bank as Intermediary Instantly Transact Tertiary Policies Secure Transactions Through Smart Contracts
Slide 22: ABL Tech: Aging IQ and Live Life Table
ABL Tech: Aging IQ and Live Life Table 22 Live Life Table Drive Wealth Planning Through AI & Longevity More accurate morality assumptions Wealth Planning Updates data in real time Industry standard with 20+ years of longevity data MyTrueAge • AI Technology to estimate biological age MyLifeScore • Da
Slide 23: Marketing and Advertising
-Q- -eo-6- ABACUS LIFE KNOW THE VALUE OF YOUR LIFE Marketing and Advertising
Slide 24: Quick Facts
Quick Facts 24 • 25.1% of the United States population has seen the commercial at least once. • 50,714 seniors directly contacted by account managers • Market saturation is strong on major news channels including Fox, CNN, FBN, Bloomberg, and MSNBC • Diminishing returns not yet reached, CPL continue
Slide 25: 3Q Financial Information and Proforma
3Q Financial Information and Proforma
Slide 26: Q3 2023 Financial Information: Proforma Income Statement
Q3 2023 Financial Information Abacus Life, Inc. Proforma Income Statement (Q3 2023 compared to Q3 2022) 26 2022 2023 2022 Total Portfolio servicing revenue 224,569 382,245 814,626 1,372,573 Total Active management revenue 18,926,144 12,080,503 46,715,702 29,836,674 Total Origination revenue 1,970,21
Slide 27: Q3 2023 Financial Information (cont'd)
Q3 2023 Financial Information (cont’d) Abacus Life, Inc. Proforma Income Statement (Q3 2023 compared to Q3 2022) 27 2022 2023 2022 OTHER INCOME (EXPENSE) Change in fair value of warrant liability (943,400) - (943,400) - Interest (expense) (2,679,237) (2,449) (3,632,420) (1,449) Interest income 63,82
Slide 28: Proforma Adjusted Net Income
Q3 2023 Financial Information Abacus Life, Inc. Proforma Adjusted Net Income 28 Proforma adjusted Net Income and Adjusted EPS Net income attributable to Abacus Life, Inc. 903,361 9,992,003 15,739,009 21,507,702 Net income for Abacus Settlements, LLC — (122,998) (974,901) 149,790 Proforma net income
Slide 29: Proforma Adjusted EBITDA
Q3 2023 Financial Information (cont’d) Abacus Life, Inc. Proforma Adjusted EBITDA 29 Proforma adjusted EBITDA Net Income for Abacus Life Inc. 10,355,455 15,399,317 22,277,795 Net Income for Abacus Settlements, LLC (122,998) (974,901) 149,790 Proforma Net Income 1,050,972 10,232,457 14,424,416 22,427
Slide 30: Return on Equity (ROE) and Return on Invested Capital (ROIC)
Q3 2023 Financial Information (cont’d) Abacus Life, Inc. Return on Equity (ROE) and Return on Invested Capital (ROIC)* 30 For the Period Ended Return on Equity September 30, 2023 Total Shareholder Equity 166,089,747 Net Income Attributable to shareholders 903,361 Annualized ROE 2.2% Proforma Adjuste
Slide 31: Consolidated Proforma Historical Financial KPIs
Consolidated Proforma Historical Financial KPIs (Q1 2022 – Q3 2023) (Only Includes Longevity Market Assets, LLC and Abacus Settlements, LLC) 43% 20% 28% 17% 11% Annualized 28% Annualized 29% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Revenue EBITDA Adjusted Quarterly Return on Invested
Slide 32: Additional Origination KPIs
Additional Origination KPIs (Q1 2022 – Q3 2023) 122 131 119 110 108 136 181 0 50 100 150 200 250 300 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Capital Deployed Through Abacus Face Value Originated Through Abacus Number of Originations 32 $45.3 $31.8 $39.4 $35.5 $34.4 $59.8 $56.4 Q1 202
Slide 33: Abacus Life
ABACUS LIFE KNOW THE VALUE OF YOUR LIFE