earnings yesterday, the season is beginning to wind down.
New data from Facts that comes out tomorrow, but their mid February report showing 74% of companies that reported earnings saw a positive EPS surprise.
This is below the 5 year average and the 10 year average.
Facts that also saying the EPS growth came from companies and industrials, IT communications services and financial sectors.
Joining me this morning is Jay Jackson, chairman and CEO of Abacus Global Management.
Jake, great to have you back.
Thank you so much for joining us.
Good morning.
Yes, exciting to be out here today.
I mean, and they had a nice report and with some of our data and technology we're excited.
Yeah, a lot of headlines to sift through this morning, but I understand that you sent a letter to shareholders at the beginning of this year.
So tell us what that was about effectively it was just summarizing.
What 25 had actually brought to us, and we grew a triple digit top and bottom line in 25 at least through three quarters as we had reported.
Our next quarterly earnings or our quarterly earnings comes out on March 12th for the entire 25, and I think people were very interested in how we were able to accomplish that type of growth in a market where a lot of alternative asset managers were either flat or didn't have that type of earnings.
So that's what we Highlighted and then we spoke a lot about our longevity data and our technology and how that was going to impact us in 2016.
So for viewers out there who are wondering what the results will be coming out on March 12th as well as your outlook for this year, tell us what contributed to that growth.
Sure, it's really twofold that we're a data driven alternative asset manager that utilizes longevity data, right, like lifespan data and what's super interesting.
AI has created this kind of really fear around displacing companies, whether that's SAS model or others, but they don't displace source companies like ours.
We originate and source the data directly from our policyholders and then we utilize that to apply it to financial plans.
And so when you start to think about how valuable that data is, even AI needs us and so.
We're such an important piece in that flywheel that now we look at the growth of 25 really accelerating into 26 and you mentioned artificial intelligence that is something that we're focusing on especially on the heels of Nvidia's earnings but a utilizing artificial intelligence and we are not using it well first we look at artificial intelligence large language models to process.
Significant amounts of data related to someone's medical profile.
For example, when you look at someone's medical history, it might be thousands of pages long and now we can use AI to summarize that in just seconds and then apply that to historical mortality verification data to really help get a better understanding of what someone's life span customized solution actually looks like then apply that to someone in retirement.
What's the number one fear in retirement running out of money would be nice to know how long you're going to be in it.
Right, those are the types of things that I think when we look forward in financial services, when we look forward to all the asset managers, they have to start applying these customized solutions you bring up an important point because when we talk about longevity from a health perspective that is a good thing, but from a financial perspective it requires planning and when you look at the life spans, the average lifespan of people right now, it is obviously longer so what does this.
Mean for both the RIA side as well as consumers.
Sure, so we'll start with the RIAs.
The RIAs have to start thinking differently about how they set up conversations with their clients, right?
You can't just pick a number out of thin air and say this is where we think it's going to be.
It has to be a customized solution and utilizing health and longevity to better understand what that financial plan should be is going to be probably one of the most important pieces of the foundational plan and.
If you look at the individual consumer, the last 2 to 4 years is where they have their highest expense again if they're not planning for that accordingly and know when that might occur, that expense falls back on their heirs, their children, and they end up moving back home and some of those things.
So it's going to have a dramatic impact on both the RAs as well as their clients and that's why we're sitting at the front of that data set going we've applied it to insurance and now we're going to apply it to the entire financial plan.
Yeah, and finally, before I let you go, I do want to ask you about your proprietary technology and how Abacus Life Solutions is using this.
Can you let us in on some of the sure, it's it requires a great deal of work, but using the technology itself we built specific IP platforms customized to the individual and what I mean by that is again someone can just carry their medical records, utilize those medical records and quickly understand what they're.
Lifespan is quick thing that should scare everyone is the number one cause of mortality in emergency rooms is misdiagnosis.
It's because they're not bad doctors.
They just don't have the medical files.
Everyone should carry their medical files, and we can help them get them.
Yes.
And so while you mentioned this technology, accuracy is key as well, isn't it?
So how accurate is it, you know, it's an actual look back in history.
That's one thing we're not just predicting what we think might happen.
It's what's already.
Occurred, right?
So everyone just like you in a customizable solution, meaning this is, this is your medical profile and everyone like you in the United States over the last 20 years.
This is what's happened to people just like you.
You can change that life span is not a straight line, it's an arc and we've created a program called Life Arc that helped people better understand those possibilities.
Well, we will have to leave it there for today, thank you so much for joining me here.
Thank you.
