Life Settlement Participant Risks (LS Series Pt 2 of 3)

 


Life Settlement Participant Risks

In this second video in our 3 part series, our principal and actuary takes a detailed look at the risks posed to life settlement investors by all participants in the life settlement transaction process (Policy Owner, Life Settlement Provider, Broker, LE Provider, Premium Software Provider, Life Settlement Firm, etc).

In this 3 part video series, an actuary draws upon his past experience in helping AIG, the world’s largest investor in life settlements, to manage and evaluate its $4 billion life settlement portfolio of 6,000 policies to explain the risks and benefits of investing in life settlements.

Click here to go back to Colva’s complete life settlement article/video archive.



The Risks and Benefits of Investing in Life Settlements

  1. Life Settlement Basics
    localhost/colva3/life-settlement-basics/
    In this video, an actuary explains the basics about life settlements, the size of the market, some major investors, and offers a numerical example of how a life settlement transaction works.
  2. Life Settlement Participant Risks
    localhost/colva3/life-settlement-participants/
    Takes a detailed look at the risks posed to life settlement investors by all participants in the life settlement transaction process (Policy Owner, Life Settlement Provider, Broker, LE Provider, Premium Software Provider, Life Settlement Firm, etc).
  3. Life Settlement Financial Risks
    localhost/colva3/life-settlement-financial-risks/
    Takes a detailed look at the financial risks faced by life settlement investors which include erroneous mortality and premium assumptions and liquidity issues that are raised because of them. Offers Life Settlement Investors tips on how to maximize the value of their investment in the industry.


References


  1. Conning Research and Consulting, Inc., “Life Settlements: A Buyers’ Market for Now, Oct. 8, 2009 (“Conning”).”
  2. PR Newswire. “Conning Research: Life Settlement Asset Class Resets to Sustained Buyer’s Market Conditions.” Oct 5, 2011. Available at: http://www.prnewswire.com/news-releases/conning-research-life-settlements-asset-class-resets-to-sustained-buyers-market-conditions-131133073.html
  3. Hildebrand, Mary. “If Life Settlements are good enough for Warren Buffett shouldn’t they be good enough for everyone else?” Senior Market Advisor. March 2002.
    Available at: http://www.merchantbankingresources.com/images/Articles.pdf
  4. Scism, Leslie. “AIG’s Death-Bet Team Departs.” Wall Street Journal. March 28, 2012.
    Available at: http://online.wsj.com/article/SB10001424052702303404704577309840190718420.html
  5. Liebel, Maria Brosnan. “Buyers Hunt for Value in Distressed Deals.” The Life Settlements Report. Vol 4, No. 19. 10/4/2010.
    Available at: http://lifesettlements.dealflow.com/article/article.cfm?sk=ucaxfszazdkggjg&q=fortress
  6. Insurance Studies Institute. “Portrayal of Life Settlements in Consumer-Focused Publications.” Sep 10, 2009.
    Available at: http://www.scribd.com/doc/20387627/Portrayal-of-Life-Settlements-in-Consumer-Focused-Publications
  7. Investor Alert, Seniors Beware: What You Should Know About Life Settlements, Financial Industry Regulatory Authority, Inc. (Jul. 30, 2009).
    Available at: http://www.finra.org/investors/protectyourself/investoralerts/annuitiesandinsurance/p018469
  8. Life Policy Group. Web 10 Oct 2010.
    Available at: http://www.lifepolicygroup.com/press/market-rocked-as-21st-services-changes-mortality-tables
  9. Justice Dept. “Manhattan US Attorney and FBI Assistant Director-In-Charge announce charges against three insurance agents who orchestrated $100M Insurance Fraud Scheme.” Feb 16, 2012.
    Available at: http://www.justice.gov/usao/nys/pressreleases/February12/bindayetalindictment.html
  10. Department of Justice. “United States Announces Eight Million Dollar ($8,000,000) Penalty And Non-Prosecution Agreement with Imperial Holdings, Inc. Apr 30, 2012.
    Available at: http://www.justice.gov/usao/nh/press/2012/Imperial.html
  11. SEC. “SEC Charges Life Settlements Firm and Three Executives with Disclosure and Accounting Fraud.” Jan 3, 2012.
    Available at: http://www.sec.gov/news/press/2012/2012-2.htm
  12. Risk Market News. “Assured Fund Resets Mortality, cuts NAV.” 22 Feb 2012.
    Available at: http://www.riskmarketnews.com/files/Assured_Fund_Resets_Mortality_Cuts_NAV.html
  13. Buhayar, Noah. “Benmosche May Limit AIG Death-Benefit Wagers after $185 Million impairment.” Bloomberg. 05 Aug 2011.
    Available at: http://www.bloomberg.com/news/2011-08-05/benmosche-may-limit-aig-death-benefit-wagers-after-185-million-impairment.html
  14. Deal Flow Media. “HM Ruby Portfolio with $1.36B in Face Amount on Block.” 13 Apr 2011.
    Available at: http://lifesettlements.dealflow.com/wires/article.cfm?title=HM-Ruby-Portfolio-136B-Face-Amount-Auction-Block&id=nlrragfrmidjaob
  15. Deal Flow Media. “Fortress Buys SageCrest Portfolio for $35M in Bankruptcy Auction.” 09 May 2011.
    Available at: http://lifesettlements.dealflow.com/wires/article.cfm?title=Fortress-Buys-SageCrest-Portfolio-35M-Bankruptcy-Auction&id=lispasfrxxewpmk
  16. Steger, Alex. “Lifemark bondholders set for showdown talks.” New Model Advisor. 19 Oct 2011.
    Available at: http://citywire.co.uk/new-model-adviser/lifemark-bondholders-set-for-showdown-talks/a534644
  17. The Daily Deal. “PE Firms bid for $6B KBC Life Settlement Assets”. 14 Oct 2010.
    Available at: http://www.thelifeline.com/download/Dealarticle.pdf
  18. Life Settlements Task Force.. “Staff Report to the United States Securities and Exchange Commission.” U.S. Securities and Exchange Commission. July 22, 2010.
    Available at: http://www.sec.gov/news/studies/2010/lifesettlements-report.pdf