Tags
Alternative Asset Opportunities, CDC, Imperial Holdings, life expectancy, life settlements, mortality tables, TLI, Traded Life Interests, ZIRP
Alternative Asset Opportunities (TLI:LN) recently released their Final Results – I thought readers might appreciate a new post. To some extent, I’m reminded of my original TLI post (wow, almost a full year ago now!) – the insured, those merry little blighters, are still trying their bloody living best to live forever! But Chronos waits for no man, or woman… Here are the policy maturities TLI has enjoyed to date:
7 maturities last year was in line with TLI’s 3 year average, and represents an accelerating mortality rate (as the total number of policies held has been steadily declining). However, proceeds of $5.7 million (mio/m) – just $0.8 mio per policy maturity – was an unexpected disappointment. But we have to chalk it up to bad luck (for us, and for them – the insured!):
Because (as of year-end) the $1.6 mio average face value (FV) of outstanding policies ($159.9 mio FV, 102 policies, 90 individual lives insured) was actually double the average policy maturity last year. And, as you can see above, at least 66% of the insured have policies which exceed $0.8 m. In fact, over 90% of the total portfolio is invested in $1.0 m+ policies. And the company has experienced a very welcome step-up in maturities since – in the first 3 months (of the new fiscal year), there’s already been 4 maturities, for a greater than expected $6.8 m (albeit with assistance from a single $5 m maturity). A pretty good harvest, and now winter’s just around the corner…
Wexboy 