Life Settlement News

On November 8-10, life settlement professionals from all walks of life will converge on New York City for the Life Insurance Settlement Association’s (LISA) 15th Annual Fall Life Settlement Conference. As 2009 winds down and the US economy shows signs of leveling, LISA proudly brings together sophisticated investors, institutional funders and other life settlement professionals for an intimate three day meeting. The LISA Fall Conference comes in the midst of a significant show of interest by the federal government and the general public. With hearings on Capitol Hill, increased activity on Wall Street and a surge in mainstream media, the life settlement industry is poised to make major gains in investment influx and public awareness.

Yesterday, World News Tonight (ABC) considered Life Settlements. Producers of the program found a physician consumer, Dr. Eddy Powell, who had happily sold his life insurance policy for far more than the value which the life insurer would have offered him at the time. Dr. Powell sold the policy for a value which required the buyer to pay the premiums for the rest of Dr. Powell’s (presumably long) life. In the ABC piece, Dr. Powell expressed regret for having sold the policy because, though the sale afforded him the ability to pay off his debts, he was no longer the owner of the policy. According to some experts, Dr. Powell appeared to have forgotten that, before considering the life settlement option, he faced two unsavory choices: sell his policy to the insurer for pennies on the dollar or allow it to lapse for a complete loss. The Life Insurance Settlement Association (LISA) encourages people who can hang onto their policies to do so, but for those who would otherwise lapse or surrender their policies, the settlement option should be considered wherever possible. The public needs to know that they have choices and that a life settlement is one of them.

Agreement Outlines Industry Best Practices; No Fine or Penalty Assessed

An influential Broward County eye doctor whose boasts about his political connections in Tallahassee fueled a federal corruption investigation into Gov. Charlie Crist’s office was arrested Wednesday on fraud charges.

With interest in the life insurance settlement industry at an all time high, industry founder Wm. Scott Page today warned of a “carpet-bagger” mentality that could be troublesome for the industry. Page, president and CEO of www.thelifeline.com, says that an increasing number of operators are rushing into the industry and promising unrealistic and untenable returns.

Finance IQ, a division of IQPC, announces a Medical Life Expectancy Debate on human longevity, featuring Dr. Aubrey de Grey, Co-Founder & Chief Science Officer of the SENS Foundation, and Dr. S. Jay Olshansky, Professor of Epidemiology at University of Illinois at Chicago. The debate is a part of the 2nd Life Settlements & Longevity Summit, being held September 30-October 1, 2009 at the Millennium Broadway Hotel in New York, NY www.lifesettlementsummit.com.

Yesterday on Capitol Hill, Russel Dorsett, President of the Life Insurance Settlement Association (LISA) testified before Congress on the benefits of life settlements to American consumers. In testimony to the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises, Mr. Dorsett reported that American consumers have benefited greatly from the life settlement market and have received nearly $10 billion over the past decade, “making it possible for them to afford retirement, medical care, or simply to enjoy the lifestyle they have earned,” said Dorsett, continuing: “The average settlement pays policy owners 4 to 6 times the policy’s cash value.”

Fitch Ratings has affirmed the Insurer Financial Strength (IFS) ratings of Genworth Financial Inc.‘s (GNW or holdco) primary U.S. life insurance companies (GNW-Life) at ‘A-’. The Rating Outlook remains Negative. A full rating list is shown below. The affirmation follows an updated review of GNW’s investment exposures, capital position, liquidity and interim financial performance, and reflects Fitch’s view that these key ratings factors remain consistent with expectations for the current rating. Fitch notes that the company has taken a number of positive steps this year to improve its financial flexibility and strengthen its capital position, including the successful partial IPO of its Canadian mortgage insurance business for $705 million of proceeds, and a recently completed equity raise of $621 million.

The Institutional Life Markets Association outlined today the major differences between life settlement securitizations and the securitization of mortgages during testimony before the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.

Emmanuel Modu, head of insurance-linked securities of A.M. Best Co., is participating in the Life Settlements and Longevity Summit being held on September 30 and October 1 at the Millennium Broadway Hotel, New York City, New York. Mr. Modu’s presentation, “Examining the Role of Rating Agencies Within a Life Settlement Securitization,” is on Thursday, October 1 at 10:45 am. Mr. Modu will also participate in a panel discussion, “Securitization of a Life Settlements Pool,” at 11:10 am on the same day – on which he will be joined by Isaac Efrat, senior managing director of Aladdin Capital, Rachel Coan, partner at Katten Muchin Rosenman, Scott Willkomm, senior vice president of Coventry, and Wai-Keung Tang, founder and president of Kappa Life.