ORLANDO, Fla., April 14, 2025 (GLOBE NEWSWIRE) -- Abacus Global Management, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a leader in the alternative asset management space, today announced it will release its first quarter 2025 financial results after the market closes on Thursday, May 8, 2025. Abacus will hold a conference call to discuss the financial results at 5:00 pm Eastern Time on May 8, 2025. A live webcast of the conference call will be available on Abacus’ investor relations website at ir.abacu ...

Core Viewpoint - Abacus Global Management is well-positioned to leverage current market volatility due to its unique business model and strategic advantages in uncertain market conditions [1][2]. Group 1: Market Positioning - The ongoing macro environment has created opportunities for Abacus as individuals and financial advisors seek alternative liquidity sources during market uncertainty, leading to increased origination opportunities [2]. - Investors are increasingly looking for uncorrelated alternative assets to diversify their portfolios, with Abacus' specialized offerings, including fourth and fifth round funds, attracting significant interest from registered investment advisors [3]. Group 2: Recent Developments - The acquisition of Carlisle Management Company enhances Abacus' market position by expanding its product lineup, particularly in GP/LP-style funds that have seen strong demand from advisors [4]. - Abacus maintains a strong balance sheet with cash and cash equivalents of $128.8 million and balance sheet policy assets of $371.4 million as of December 31, 2024, along with availability under its share repurchase program [5]. Group 3: Business Model Resilience - The dual advantage of serving both consumers seeking liquidity and investors pursuing uncorrelated assets contributes to a resilient, cycle-tested business model for Abacus [4].

Core Insights - ABL Bio and GSK have entered into a multi-program agreement to develop novel medicines targeting neurodegenerative diseases using ABL Bio's Grabody-B platform technology, which facilitates drug delivery across the blood-brain barrier [1][2][3] - ABL Bio is set to receive up to £77 million in upfront and near-term payments, with potential total payments reaching £2.075 billion across various programs [3] Company Overview - ABL Bio is a clinical-stage biotech company focused on bispecific antibody technology for immuno-oncology and neurodegenerative diseases, with multiple clinical projects underway across different countries [5] - The company is developing several pipelines, including ABL301, ABL001 (tovecimig), ABL111 (givastomig), and others, with ABL001 having received Fast Track designation from the FDA [5] Industry Context - The blood-brain barrier (BBB) presents a significant challenge in developing treatments for neurological diseases, and ABL Bio's Grabody-B technology aims to overcome this limitation by targeting the Insulin-like Growth Factor 1 Receptor (IGF1R) [2] - There is a growing need for new therapeutics for neurodegenerative diseases, driven by an aging population and the increasing prevalence of conditions such as Alzheimer's and Parkinson's [4]

Group 1 - Abacus Life, Inc. (ABL) shares have increased by 2.6% over the past four weeks, closing at $7.87, with a mean price target of $13.88 indicating a potential upside of 76.4% [1] - The average price targets range from a low of $13 to a high of $15, with a standard deviation of $0.85, suggesting a consensus among analysts regarding the stock's potential [2] - Analysts have shown optimism about ABL's earnings prospects, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][10] Group 2 - The Zacks Consensus Estimate for ABL's current year earnings has increased by 3.4% over the last 30 days, indicating a positive outlook [11] - ABL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting strong potential for upside [12] - While price targets can be misleading, the direction indicated by the consensus price target for ABL appears to be a reliable guide for potential price movement [9][12]

Industry Overview - The Zacks Life Insurance industry includes companies providing life insurance and retirement benefits, with products such as annuities, whole and term life insurance, and health insurance [2] - The life insurance market is projected to grow, with gross written premiums expected to reach $1.34 trillion by 2025 and $2.5 trillion by 2026, reflecting a CAGR of 3.54% from 2025 to 2029 [4][2] - The industry is experiencing increased demand for protection products, driven by a growing number of baby boomers seeking retirement benefits [2] Trends Impacting the Industry - Interest rates are expected to be cut three times in 2024, totaling 150 basis points, which may negatively impact investment returns for life insurers [3] - Insurers are adapting to low interest rates by investing in alternative assets like private equity and real estate [3] - Product redesigning is a key trend, with insurers focusing on bundled products that offer living benefits rather than just death benefits [4] Technological Advancements - The adoption of technology is increasing, with a shift towards digital platforms and online sales in the U.S. life insurance market [5] - Automation and the use of real-time data are expected to enhance premium growth and operational efficiency [5] - Insurers are investing in technological advancements to reduce operational costs and improve margins while also addressing cybersecurity threats [5] Performance Metrics - The Zacks Life Insurance industry ranks 58, placing it in the top 24% of 255 Zacks industries, indicating strong near-term prospects [6][7] - Over the past year, the life insurance industry has gained 13.4%, outperforming the Zacks S&P 500 composite's increase of 7.7% but underperforming the Finance sector's 15.1% increase [9] - The industry currently trades at a trailing 12-month price-to-book (P/B) ratio of 1.81X, significantly lower than the S&P 500's 7.84X and the Finance sector's 4.05X [12] Company Highlights - **Abacus Global Management**: Expected adjusted net income for 2025 is between $70 million and $78 million, reflecting a 51% to 68% increase from 2024 [19] - **Aviva**: Anticipates earnings growth of 8.1% and 10.5% for 2025 and 2026, respectively, supported by a proposed acquisition of Direct Line [24][22] - **Jackson Financial**: Projects an 11% to 27% increase in capital return to shareholders in 2025, with a focus on diversified product sales [27][26] - **NN Group**: Expected earnings growth of 25.5% and 2.6% for 2025 and 2026, respectively, driven by strong sales and margin improvements in Europe [31][30]

Business Risks - The company's valuation of life insurance policies is uncertain, as many values are tied to actual maturity dates, which could adversely impact business performance [81]. - The company faces risks in accurately forecasting life expectancies, which may lead to lower returns on life settlement policies if people live longer than expected [90]. - The availability of life insurance policies for acquisition is limited, and failure to secure sufficient quality policies could materially affect the company's business [95]. - Increased competition from life insurance companies and brokers offering enhanced cash surrender values may adversely impact the company's ability to acquire policies [97]. - The company assumes credit risk associated with life insurance companies, which could affect the realization of full value from insurance payouts [84]. - The company may not realize anticipated benefits from recent acquisitions, which could negatively impact business results and stock value [84]. - The life settlement industry faces negative public perception and political opposition, which could adversely affect the Company's investments and liquidity [99]. - There is a risk of fraud in the origination and sale of life insurance policies, which could significantly impact the Company's returns and overall business [103]. - The Company may be subject to claims from life insurance companies and regulatory authorities, which could have a material adverse impact on its operations [104]. - Changes in legislation could classify life settlements as securities, leading to increased regulatory burdens and potential limitations on the Company's investment strategies [107]. - The Company may face challenges in liquidating life insurance policies due to market conditions and uncertainties surrounding their liquidation value [131]. - The Company may face litigation or claims related to acquisitions, which could adversely affect its business and financial results [174]. Regulatory and Compliance Risks - The company is subject to significant foreign currency risk due to operations conducted in currencies other than the U.S. dollar [84]. - The company's business may be affected by potential future regulations regarding life settlements, which could impose additional compliance burdens [82]. - The Company is subject to U.S. privacy laws, and non-compliance could result in fines, sanctions, and reputational harm [118]. - The Company collects nonpublic personal information (NPI) and protected health information (PHI), and must comply with regulations such as the Gramm-Leach Bliley Act (GLBA) and HIPAA [119][120]. - The SEC has recommended defining life settlements as securities, which could lead to significant regulatory changes affecting the Company's business model [109]. - The Company may need to register as an investment company under the Investment Company Act, which would require substantial changes to its business operations [113]. - The Company is subject to the EU General Data Protection Regulation (GDPR), and non-compliance could result in significant penalties affecting its financial condition [167]. - The Company's business is subject to increasing regulatory oversight outside the U.S., which could lead to higher compliance costs and impact its growth [169]. Financial Performance and Capital Structure - The Company has not paid cash dividends in the past and does not expect to do so in the foreseeable future, limiting returns to stock price increases [88]. - The company's stock price has been volatile and may continue to fluctuate widely due to various factors beyond its control [88]. - The Company may require additional financing to support its business, and failure to secure adequate funds could harm its growth opportunities [148]. - The company had outstanding indebtedness of approximately $381 million as of December 31, 2024, including $100 million under its Senior Secured Credit Facility [193]. - The company has a committed Delayed Draw Facility with up to $50 million available to be drawn subject to certain conditions [193]. - The company may issue additional securities, which could result in substantial dilution to existing stockholders [181]. - The company expects to incur additional indebtedness in the future, which may affect its financial and operational flexibility [193]. Operational Risks - The Company relies on third-party data for tracking life settlement policies, and failures in these systems could lead to financial losses and operational disruptions [102]. - The Company must ensure timely premium payments on life insurance policies to avoid lapses, which would adversely affect its investments [127]. - The Company has policies in place to identify potential STOLI policies, but there is no guarantee that all such policies will be identified [125]. - The Company’s success is dependent on retaining experienced management and key employees, with competition for talent being intense [135]. - Integration of the acquired companies may lead to the loss of key employees and customers, as well as increased costs and delays in achieving anticipated synergies [161]. - Disruption to the Company's distribution channels may lead to a decline in assets under management (AUM), revenue, and earnings [170]. Market and Economic Risks - Pandemics, rising interest rates, and inflation may disrupt the Company's ability to originate life settlement policies, adversely impacting its financial position [142]. - The company's financial performance and stock price may be influenced by fluctuations in market conditions and investor sentiment [185]. - The company’s stock repurchase program may not enhance long-term stockholder value and could increase stock price volatility [176]. - The company has entered into lock-up agreements that restrict certain stockholders from selling shares until specific dates [179]. Internal Controls and Governance - The Company must maintain effective internal controls over financial reporting to prevent errors and ensure reliable financial reports [144]. - The Company has irrevocably elected to opt out of the extended transition period under the JOBS Act [360]. - As an emerging growth company, the Company will adopt new or revised accounting standards at the same time as public companies [361]. - Following the Business Combination, the Company will comply with new or revised accounting standards on the relevant dates required for non-emerging growth companies [361].

Financial Data and Key Metrics Changes - For Q4 2024, total revenue grew by 40% year over year to $33.2 million, with adjusted net income increasing by 126% to $13.4 million and adjusted EBITDA rising by 51% to $16.6 million [9][10][24] - For the full year 2024, total revenue increased by 69% to $111.9 million, adjusted net income grew by 58% to $46.5 million, and adjusted EBITDA rose by 57% to $61.6 million [10][24][29] - Adjusted EBITDA margin for Q4 was 50%, compared to 47% in the prior year, while for the full year, it was 55%, down from 59% [27][29] Business Line Data and Key Metrics Changes - The company completed two strategic acquisitions, Carlisle Management Company and FCF Advisors, adding approximately $2.6 billion in assets under management [12][13] - Policy originations increased by 63% to 1,034 in 2024, with capital deployed exceeding $344 million [10][19] Market Data and Key Metrics Changes - The company reported a strong liquidity position with cash and cash equivalents of $128.8 million and outstanding long-term debt of $342.4 million as of December 31, 2024 [28] - The company anticipates a strong 2025, projecting adjusted net income between $70 million and $78 million, implying growth of 51% to 68% [11][29] Company Strategy and Development Direction - The company aims to solidify its position as a leader in the alternative asset management space, leveraging proprietary technology and data to capture market opportunities [21][32] - The rebranding to Abacus Global Management reflects the company's evolution and global market presence, enhancing its offerings to institutional investors [16][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities ahead, citing a favorable market environment for both policy origination and investor interest in unique assets [66][72] - The company is well-positioned for 2025, with a focus on integrating acquisitions and expanding its asset management capabilities [19][29] Other Important Information - The company raised $181.7 million in additional equity and secured a $150 million debt-financing facility to support growth initiatives [19][20] - The company has initiated a new ETF, the Abacus FCF Small Cap Leaders ETF, and reduced management fees across its ETFs [15][19] Q&A Session Summary Question: Key swing factors in guidance assumptions - Management clarified that the guidance range does not depend on a full draw of the remaining $50 million on the revolver, emphasizing strong origination and integration of asset management [34][36] Question: Update on direct channel metrics post-advertising shift - Management confirmed that advertising was not paused but targeted to non-swing states, resulting in continued positive impacts on policy origination [37][39] Question: Deployment of capital from recent equity and debt offerings - Management indicated significant deployment of capital in Q4 and a strong position for Q1, with expectations for continued positive results [42][44] Question: Strategy for holding policies on the balance sheet - Management stated that policies on the balance sheet are expected to hover around $370 million to $450 million, with a target of two turns per year on average [50][52] Question: Update on the carrier buyback program - Management reported ongoing expansion of the carrier buyback program and positive expectations for 2025 [57][60] Question: Changes in behavior of individuals life settling policies - Management noted that market volatility tends to increase interest in liquidity options, positively impacting origination [61][66] Question: Year-end AUM at Carlisle and FCF - Management expressed optimism about AUM growth for both entities, citing strong interest and favorable market conditions [69][72]

Core Insights - Abacus Life, Inc. reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an improvement from a loss of $0.10 per share a year ago, resulting in an earnings surprise of 23.08% [1] - The company achieved revenues of $33.21 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 15.67%, compared to $23.65 million in the same quarter last year [2] - Abacus Life, Inc. has outperformed consensus EPS estimates three times over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $35.85 million, and for the current fiscal year, it is $0.73 on revenues of $187.92 million [7] - The estimate revisions trend for Abacus Life, Inc. is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Life Insurance industry, to which Abacus Life, Inc. belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue increased by 40% year-over-year to $33.2 million, with adjusted net income growing by 126% to $13.4 million and adjusted EBITDA rising by 51% to $16.6 million [10][28][29] - For the full year 2024, total revenue rose by 69% to $111.9 million, adjusted net income increased by 58% to $46.5 million, and adjusted EBITDA grew by 57% to $61.6 million [11][26][29] Business Line Data and Key Metrics Changes - Policy originations increased by 63% to 1,034 in 2024, with capital deployed exceeding $344 million [12] - Active management revenue was a significant driver of revenue growth, attributed to increased capital deployment and more policies sold directly to third parties [26][27] Market Data and Key Metrics Changes - The company successfully completed acquisitions that added approximately $2.6 billion in assets under management, enhancing its market reach and capabilities [14][15] - The company reported a strong liquidity position with cash and cash equivalents of $128.8 million as of December 31, 2024 [31] Company Strategy and Development Direction - The company aims to revolutionize financial services through expert asset management and advanced technology, focusing on providing tailored financial solutions [18][17] - The rebranding to Abacus Global Management reflects the company's evolution and global market presence, with a commitment to maintaining momentum in the alternative asset management space [17][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year 2025 adjusted net income between $70 million and $78 million, indicating growth of 51% to 68% compared to 2024 [13][32] - The management highlighted the positive impact of market volatility on origination interest, as individuals seek liquidity and investors look for unique assets [68][71] Other Important Information - The company announced management fee reductions across all ETFs and an 18-month fee waiver on four ETFs to enhance competitiveness [17] - The company has initiated a strategy to simplify its capital structure, including private warrant exchange agreements [22] Q&A Session Summary Question: Key swing factors and assumptions for guidance range - Management clarified that the guidance range does not depend on the full draw of the $50 million revolver, emphasizing strong origination as a key driver [38] Question: Update on direct channel metrics post-advertising adjustments - Management confirmed that advertising was not paused but targeted to non-swing states, resulting in positive impacts on policy origination [42][43] Question: Deployment of capital from recent equity and debt offerings - Management indicated that a significant amount of capital was deployed successfully, with a strong cash position remaining at year-end [48] Question: Strategy for holding policies on the balance sheet - Management stated that policies on the balance sheet are expected to hover around $370 million to $450 million as policies are bought and sold [56] Question: Update on the carrier buyback program - Management reported continued expansion of the carrier buyback program, anticipating growth in 2025 [62] Question: Changes in behavior of individuals life-settling policies - Management noted that market volatility tends to increase interest in liquidity options, positively impacting origination [68][71] Question: Year-end AUM at Carlisle and FCF - Management expressed optimism about the growth of AUM from the acquisitions, with significant interest in new offerings [76][78]

Abacus Global Management (ABL) Q4 2024 Earnings Call March 27, 2025 05:00 PM ET Company Participants Robert Phillips - Senior VP of Investor Relations & Corporate AffairsJay Jackson - CEO, President & ChairmanWilliam McCauley - Chief Financial OfficerPatrick Davitt - PartnerCrispin Love - DirectorRandy Binner - Managing DirectorMike Grondahl - Head of Equities & Director of ResearchAndrew Kligerman - Managing Director Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to Abacus ...