Abacus Global Management, Inc.

and welcome to Abacus Life 3Q23 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Jackson, Chief Executive Officer. Thank you, Mr. Jackson. You may begin.

Good day, ladies and gentlemen. Thank you for standing by. Advocates Life refers participants on this call to the investor webpage ir.advocateslife.com for the press release, the investor information filings with the SEC for discussion of the risks that can affect the business. Abacus Life specifically refers participants to the presentation furnished today on Form 8K with the Securities and Exchange Commission and to remind listeners that some of the comments today may contain forward-looking statements and, as such, will be subject to risks and uncertainties which, if they materialize, could materially affect results. Reference is made to the section entitled Forward-Looking Statements in the Company's Earnings Press Release for the Third Quarter of 2023, which is incorporated herein by reference. We note forward-looking statements, whether written or oral, include but are not limited to advocacy life's expectation or prediction of financial and business information and conditions, as well as its competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties, and assumptions, including the risk factors set forth in Item 1A of our most recent 10Q, which, if they materialize, could materially affect results, and such forward-looking statements do not guarantee performance and advocacy life gives such assurances. Abacus Life is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. In addition, historical data pertaining to the operating results and other performance indicators applicable to Abacus Life are not necessarily indicative of results to be achieved in succeeding periods. I will now turn the call over to Jay Jackson, Chief Executive Officer of Abacus Life.

Thank you to everyone listening today for your interest in Abacus, and welcome to our 2023 third quarter earnings call. With me today is our Chief Financial Officer, Bill McCauley, and after our remarks, we'll open it up to your questions. Our strong third quarter results continue to validate Abacus's differentiated business model and further contribute to our long track record of sustainable and profitable growth. For those new to Abacus, last year, we generated the most earnings in our history. And the third quarter of 2022 was our strongest overall quarter in our history. Fast forward one year. In the third quarter of 2023, we surpassed our historic quarter from the prior year by several metrics. We grew total revenues 20% year-over-year to $21.1 million, grew adjusted EBITDA 26% year-over-year to $10.8 million, and generated strong adjusted net income of $9.2 million even after increasing advertising and marketing spend to $1.6 million for the quarter. Bill will be along shortly to discuss more of our third quarter financial performance in further detail. In addition to our continued progress, we are pleased to have successfully completed our public bond offering on November 10th, using the proceeds to refinance our prior debt and thus reducing the interest rate we pay from our prior debt by approximately 275 basis points. Our proven business model, expert team, wealth of data, and innovative technology positions us well to execute on our strategic initiatives. take advantage of the many exciting opportunities that lie ahead, and ultimately create long-term value for our shareholders. As we did last quarter, I wanted to spend a few minutes to walk through our compelling business model, our value proposition, and why we are excited for the opportunities we see to profitably and sustainably grow our business and deliver shareholder value over the long term. Currently, Abacus's primary driver of top-line growth is our origination platform and vertically integrated asset management and servicing platform. For almost 20 years, we have been a leader in our industry with strong market share in a market with high barriers to entry. We have a seasoned and strong management team, each of whom has 20-plus years of expertise. Crucially, Abacus already generates solid and growing revenue with 19 consecutive years of gap profitability and enviable margins. Our financial success stems from the tremendous benefit we provide to policyholders who are seeking liquidity and to investors who are seeking less correlated assets in which to invest. This creates a significant opportunity for growth in a market where many companies are facing challenges. Our core origination and asset management vertical, which we have recently rebranded as ABL Longevity Funds, consists of our LMA income series funds, to which we expect to add a 1940 Act mutual fund called ABL Longevity Growth and Income Fund, with an expected launch in 2024. This vertical has attracted over $55 million in capital from retail investors in 2023. We are also developing two additional compelling company verticals in personal wealth management and technology. First, we announced last week the launch of our new wealth division, ABL Wealth, to offer clients custom lifespan-based financial solutions in partnership with Dynasty Financial Partners, one of the country's leading wealth management platforms for independent wealth management firms. The thesis for ABL Wealth rests in our belief that personal wealth management using lifespan and longevity as a core financial tool to design custom solutions is going to fundamentally impact the retail financial services industry. With ABL Wealth, we expect to capitalize on our current abacus marketing leads, including the thousands of in-house inquiries to design custom asset management solutions. We will continue to partner with RIAs and broker-dealers to expand our product offerings and align our interests. In addition to the advent of ABL Wealth, we noted on our last call that our real underlying asset is the wealth of technology we've built and longevity data we've accumulated during our history. Anchored by years of aggregated data and analytics, Abacus is a data technology innovator that uses its proprietary insurance and data tables to drive the investment decision process to acquire policies and leverages it to complement several other products and processes. We've recently rebranded that vertical as ABL Tech to better capture our alignment in branding with Abacus. We believe ABL Tech can positively impact several industries. First, with our digital origination platform known as the Abacus Marketplace, advisors and their clients can have a complete end-to-end digital purchase process of their life insurance policy, which will soon incorporate AI and blockchain technology. We also expect to innovate how life insurance is issued and underwritten at the time of issuance. and we are currently advancing a partnership with a life insurance carrier to issue new lifespan-based products. We expect ABL Wealth and ABL Tech to be a big part of our future by contributing to top-line revenue growth in 2024 and beyond. We look forward to providing you the updates, progress of both ABL Wealth and ABL Tech in the coming quarters. Meanwhile, our core policy acquisition platform continues to grow consistently and profitably. As a reminder, life insurance is one of the market's globally largest assets, with $13 trillion in the United States alone, 2x the America's residential real estate market, and a market where more than 9 out of 10 life insurance policies, or 90%, will never pay a claim. This is driven by a lack of education by policyholders that the financial option to sell their policy even exists. The fact of the matter is that policyholders don't treat their life insurance policy like equity. They treat it like debt that they simply stop paying on. Our key to continued growth and success is education of both the financial advisors or insurance agents and the policyholders directly. To drive this education effort, Abacus has proudly partnered with over 30,000 financial professionals, and we continue to drive a majority of our policy origination from this channel. However, our fastest growing origination channel is our direct-to-consumer channel that we have built over the past several years. We're very excited about this channel, the opportunity for long-term growth that it offers us, as we can now directly reach and educate policy owners about their liquidity options. Our campaign has touched over 86 million consumers with an average of 80 national television commercials per week on major news networks, leading to thousands of inquiries per month. We expect to continue our television and digital campaigns to further expand our market share and drive industry awareness. We formally launched our direct-to-consumer channel in 2017 when we acquired 41 policies representing 21.4 million of face value. This year to date in direct-to-consumer, we acquired 220 policies representing $134 million of face value. That's 5x growth in just six years. On the other side of the transaction, we are solving a real pain point for investors that cannot find enough life insurance policies to purchase. Institutional investors love our product as it is an asset class that has a low correlation to other assets with mid-teens historical returns in very strong institutional investment grade counterparts. There are very few asset class that can boast that kind of historical track record. So now let's turn to the counterparty. Our policy counterparties are generally high-quality, investment-grade insurance companies. Typically, 95% of all the carriers in our portfolio have an A rating or better from AMVEST. The underlying credit that they issue is the life insurance policy, which sits in the cash stack higher than any senior debt or equity that they issue. Moreover, this product is highly regulated at the point of inflection. In fact, we are unaware of a single life insurance policy issued that did not pay at mortality due to illiquidity of the carrier. As such, the asset itself is incredibly stable. Fundamental shift in our business is the resale of policies we originate through our platform back to the insurance company. This is a win-win transaction that benefits both the policyholder and the insurance company, which repurchases legacy liabilities often at a price less than its carrying value. We have repurchased over $1 billion in base value over the last year and expect this to grow significantly as we add more life insurance companies and reinsurers to the program. As we move ahead, we believe our core market is only going to continue to expand with a significant tailwind driven by efforts to educate clients about the value of their policy. Our industry currently only has about 2% market penetration of a $233 billion plus opportunity with a significant financial incentive to the individual selling their policies. With new investor interest from both institutions and life insurance companies, that's a significant gap that we believe we can close. Our financial metrics continue to illustrate this benefit. We've generated consistent growth year over year, specifically in total face value of policies purchased, origination capital deployed, net earnings, and return on equity. We are excited about our historical, current, and future trends. We have thoughtfully evaluated expected origination growth, reviewed our future revenue streams and corresponding costs to operate this business, and prudently applied it to our company. With that, I will now hand it over to our CFO, Bill McCauley, to discuss the specifics on our Q3 results and financials.