Longevity Markets 2Yields to LifeExpectancy3Capital MarketsCommentary4Longevity Market 5Special Reports 6Credit Watch 7State GuarantyFunds8
December 15, 2008
Volume I, Issue 1Inside this issue:
The Week in Review section of ourpublication covers basic market data such as volume of life settlements and amount of face value sold in the last two weeks. Thisprovides readers with a quick snapshot of what is currently happening in our markets.For a more in depth analysis of market con-ditions please refer to our Longevity MarketsCommentary Section on pg. 2 or for basictransaction data our Trade Data section onpg. 10. The last two weeks in the life set-tlement markets have seen the repercussionsfrom the changes in underwriting tables by both 21
Services and AVS. The impact of these revisions is likely to be felt well into2009. Based on data collected for the period11-17-08 thru 11-28-08 there was approxi-mately $297 million in face value transactedat an average of 19.02% of face value. Thisis a 8% decrease in volume from the priorperiod where approximately $326 million was transacted at an average of 21.16% of face value. The average policy face value was$2,041,751 and the 5 states with the most volume were Florida, California, New York, Texas and Delaware. Because of thechanges in underwriting tables, the averageage of male insured’s has risen to 74.3 from72.1 a 3.1% increase and the average age of female insured’s has risen to 75.7 from 74.1a 2.2 % increase. The ratio of males to fe-males remained constant at 1.8:1. Although there has been an in-crease in the average ages for insured it doesnot yet appear to be enough to compensatefor the average life expectancies now issuedfrom 21
and AVS. The average LE from21
for males is 158 up from 146 and forfemales 163 up from 152. Data is still being compiled for AVS LE’s.Funders will likely adjust for thesechanges in 2009 either with longer target ma-turity dates or increased demand for mortality impairments. In our Yields-to-Life-Expectancy section on pg. 3 you will be ableto watch for this increase over the coming weeks by looking for a drop in IRR’s in LE’sunder 10 years.Even though the holidays are rapidly approaching and December can often be viewed as a half month for transactional pur-poses, it appears on track to exceed the vol-ume of November which was significantly reduced due to the recalculation of bids basedon new underwriting information. Year overyear November 2008 volume is significantly less than it was in 2007 where we estimatethat approximately $1.3 billion was closed andfunded. We believe 2009 will bring an oppor-tunity for the life settlement market to reas-sert itself as a valuable tool for consumers and investors alike.
Trade Data 10
Week In Review
Editor & Publisher
Brian C. Dorr
Anne K. ZandKeith M. FeldmanCarline B. Gele
Managing Editor and Writer
David C. Dorr
LIFE-EXCHANGE tradedata is published twicemonthly on the first andfifteenth of each month.Subscription rate is $500per month or $5,500 forthe whole year. No dataherein should be con-strued to be recommenda-tions to purchase, retain,or sell securities, or toprovide investment adviceof the companies men-tioned or advertised. Nofees are accepted for pub-lishing any editorial infor-mation. LIFE-EXCHANGE, its subsidi-aries, and its employeesmay, from time to time,purchase, own, or sellsecurities or other invest-ment products of thecompanies discussed oradvertised in this publica-tion.
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