Life insurance is often seen as a safety net — a financial cushion for loved ones after a policyholder’s death. But for those who understand its true value, life insurance can also serve as a unique and underutilized asset class, offering opportunities for investment and financial planning far beyond its intended purpose. Life insurance policies hold the potential to be leveraged in ways that many don't fully grasp, such as generating liquidity or being used as an investment vehicle in a diversified portfolio.
Abacus Global Management (NASDAQ:ABL) has recognized this untapped potential, transforming life insurance from a passive safety net into a dynamic financial asset. What began as a firm focused on educating individuals about their policies has expanded into a global asset manager, originating and managing life insurance as an alternative asset, while also harnessing innovative data and technology to unlock new opportunities for clients and investors.
"A lot of people don't realize how valuable the asset is and how it can be used in a multitude of ways," Abacus Global Management CEO Jay Jackson told Proactive.
Founded more than 20 years ago, Orlando-based Abacus started as a company focused on educating individuals about the value of life insurance. "We began with a focus on life insurance, but we have since evolved into something much broader — a global asset manager that also specializes in understanding lifespan data,” Jackson said.
Under Jackson’s leadership, Abacus is carving out a unique role in asset management, leveraging life insurance and health data as its cornerstone. The company’s Life Solutions division initially centered around life insurance policies, offering insights into their value and how long clients would need to pay into them. This understanding, Jackson noted, allows clients to determine the net present value of their policies, an approach that distinguishes Abacus from other firms in the industry. “We control our own destiny,” Jackson said. “We are both the origination company and the market maker, ultimately managing the very assets we create.”
Diversified approach
This strategic approach laid the foundation for Abacus’s evolution, culminating in a rebrand that better encapsulates its expanded global reach and diversified financial services. In March 2025, the firm rebranded as Abacus Global Management to reflect its expanded global presence and technology-driven financial services.
The company now operates through four divisions: Abacus Life Solutions (secondary life insurance market), Abacus Asset Group (longevity-based investments), ABL Wealth (personalized financial planning), and ABL Tech (technology solutions for mortality verification and pension fund management). “The most important piece of the name change was to capture, more broadly, everything that we do,” said Jackson. “We're an alternative asset manager that invests in non-correlated assets, including life insurance policies, but we're an asset manager, and so we thought to better capture that, we would change the name.”
The rebrand comes as Abacus has posted an impressive growth trajectory. The firm reported a 40% year-over-year revenue increase in Q4 2024, with full-year revenue up 69%. Jackson attributed much of the company's success to its consistent focus on managing and originating alternative assets that are less correlated with traditional financial markets. In a time when investors seek stability, the appeal of Abacus’ portfolio, which consists of nearly $3 billion of assets under management, has grown considerably.
Understanding the data
Artificial intelligence (AI) has become a central tool in Abacus’ operations, both for customer service and data analytics.
"AI is a substantial tool for us," Jackson said. "We receive close to 10,000 inquiries every month, and AI helps us qualify those leads more effectively. Beyond that, it’s how we use AI to understand the massive amounts of data we have on people’s lifespans. AI helps us model billions of scenarios, allowing us to make more accurate predictions about life expectancy and, by extension, financial planning."
Analysts see significant upside for Abacus Global Management's stock, which currently trades at 8x its estimated 2025 adjusted EBITDA. Northland has set a higher price target of $13.50, saying the stock’s current valuation does not reflect Abacus' potential to generate recurring fee-based income, which could lead to a re-rating. Analysts point to the company's ABL Tech and ABL Wealth divisions as key growth drivers, with Piper Sandler noting that the market has yet to fully recognize the earnings potential from these business lines. As Abacus demonstrates consistent fee-based revenue growth, analysts anticipate a higher valuation multiple.
The positive outlook is supported by Abacus' expansion into multiple asset classes and the development of a comprehensive platform that provides financial advisory services, manages investments, and leverages advanced data analytics to offer technology solutions.
Controlling the life cycle
Looking ahead to 2025, Jackson remains bullish on Abacus’ prospects. "We’re incredibly well positioned for 2025," he said. "We have cash on our balance sheet to continue acquiring policies, and our asset management business is gaining increasing interest." Abacus’ promising outlook for the year includes a forecasted 51% to 68% growth in adjusted net income.
But it’s not just the financial growth that excites Jackson. "What sets Abacus apart is that we control the full lifecycle of our assets," he said. "We are the origination company, the market maker, the asset manager, and now a technology company. In a market where it feels like few companies are in control, that’s a significant advantage."