Life Settlement Index Recap - August, 2010 Data

The latest Amrita Life Settlement Index results, based on August 2010 data, were released at 10:00 AM EST on September 7th. The results showed a modest gain of 7.1% from July’s index level of 460 points. The 32.8 point increase to 492.8 was based on mixed activity and sentiment among survey respondents.

Most survey respondents reported increases in bidding and purchasing activity in August. In addition, the majority of responses included a forecast for continued improvement in life settlement demand moving forward. However, these positive signs for demand were buoyed by a small minority of respondents that indicated inactivity in August. Providers are typically inactive due to capital restrictions.

The presence of a bearish minority was exemplified by declines in purchasing activity, in addition to narrowing buying parameters. Inconsistent deal flow remains a reality of the current marketplace as provider survey responses included both increases and decreases in case submissions.

After two months of flat demand, the life settlement market is again beginning to show measured growth. However, the overall increase in demand can only be described as moderate due to the uneven deployment of capital and purchasing activity among life settlement providers.