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Dematco announces new tradeable bond

10/20/11

Dematco, a company known for dematerializing and converting insurance instruments from paper form to electronic, has announced a deal with Toronto-based hedge fund manager Quantus Investment Corporation.

The 50 percent revenue sharing agreement between the two companies will allow electronically tradable investment instruments, such as savings accounts, stock investments and mutual funds, to be created from $200 million worth of dematerialized Senior Life Insurance Policies.

"In a market traditionally confined to paper products only, we expect to generate significant fees by dematerializing Senior Life Settlement Policies," Dematco chairman and CEO Robert Stevens said. "Quantus is the long awaited relationship that the company has been diligently working on overtime. Our initial marketing strategy anticipates revenue in the fourth quarter reflective of the volumes created."

Quantus Investment Corporation focuses on the importance of an investor's losses as opposed to his or her gains and encourages discipline to know when to react and follow the company's investment strategy.

More insurance companies in the United States may follow the lead of the U.S. Department of the Treasury and transition from paper to electronic in order to reduce their expenses. The Treasury Department said it will begin using electronic bonds as opposed to paper bonds in January 2012, saving taxpayers more than $70 million over the next five years. 

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