Life Settlement Index Recap - October, 2010 Data

The results of the Amrita Life Settlement Index were released at 10:00 AM on Nov. 2, 2010. The results were based upon surveys collected from life settlement providers across the United States. Once again, the index showed robust improvement in the life settlement market with a 23.8% jump from 570.3 points in September to 706 points in October. The 135.7 point increase shows a strengthening demand for life insurance policies on the secondary market.

The market's growing demand is fueled in part by the resumption of buying activity by previously dormant life settlement providers. New investor capital is being deployed as funding sources either begin participating or resume participation in the asset class. This increase in demand is accentuated by a tightening in the supply of available policies on the secondary market. Some survey respondents reported a slow down in case submissions and closings. Although, the slow down in case submissions was inconsistent across respondents as some providers reported an increase.

Overall there was a slight increase in provider bidding activity, while most providers reported approximately the same amount of case closings. A minority of providers reported fewer case closings. As the market adjusts to new capital and policy supply fluctuations, target IRR's have remained relative stable but buying parameters broadened somewhat.