Life Settlement News

Institutional Investor Journals and the Life Insurance Settlement Association Publish New Research and Investment Strategies in a Special Section on Life Settlements in The Journal of Structured Finance

Life settlement-backed securities have seen tremendous growth in the past 12 months. The life settlement market expanded in 2006 to approximately $12 billion. While this number is still a fraction of what some predict will be the size in 10 years, it still represents a significant increase over the prior year. The market for life settlements grows as financial institutions become involved in unprecedented ways via securitization of life insurance policies or other new synthetic structures.
For the second year, Institutional Investor Journals and the Life Insurance Settlement Association (LISA) have published a special section on life settlements in the Summer 2007 issue of The Journal of Structured Finance.

Advanced Life Settlements Management, B.V. (“Advanced LSM”), a specialized Dutch firm active in life settlements responded to rumours today of a possible alliance with a major US investment bank.

If MetLife Inc. is any guide, it’s time to search beyond leveraged buyouts for investment returns.

The biggest U.S. life insurer plans to devote more to hedge funds, startup companies, and even timber to spruce up $330 billion in holdings dominated by bonds yielding about 6 percent. What New York-based MetLife won’t do is boost the share of assets dedicated to leveraged buyouts after gains from LBO funds were almost double the company’s expectations in the first quarter.

Genstar Capital, LLC and Boston Ventures announced today a majority investment in 21st Services, in partnership with management. The Minneapolis, Minnesota based Company is a leading provider of mission critical, life expectancy information that is currently used in the life settlement industry, the secondary market for life insurance, and with new applications planned to be launched in coming years.

Ritchie Capital Management Ltd. sought bankruptcy protection for two Dublin-based funds after they lost more than $700 million on life insurance investments.

Mergers and the battle to maintain market share will dominate the agendas of many life insurers over the next 12 to 18 months, according to analysts and company executives at a Standard & Poor’s insurance conference here last week.

Managers of Life Partners Holdings Inc. are not sure why the price of the company’s common stock is going up and down so much this week.

Berlin Atlantic Capital (BAC), the leading German investment house for Structured Life Products, has strengthened the management team of its US subsidiary, BAC Structured Life Group, with the addition of several experienced industry professionals.

Life Partners Holdings, Inc. (Nasdaq GM:LPHI), announced today that it will pay a quarterly dividend of $0.0625 per share to shareholders of record as of May 31, 2007 to be paid on or about June 15, 2007.

North Dakota last week became the first state to adopt a more stringent statute regulating life settlements, with special emphasis on stranger-originated life insurance. Other states may follow, making life settlements a less attractive option for adviser clients who want to sell or invest in life insurance policies, industry observers say. Life settlements are the sale of life insurance policies by policyholders to third-party investors.