The Life Settlements Report - April 5, 2007

Accelerating Investment Activity Despite Looming Supply and Legal Challenges

The life settlements market is growing at a rapid pace and shows no signs of letting up. Bernstein Research predicts that life settlement transactions could grow to more than $160 billion over the next decade. The firm estimates total face value of transactions ranged from $9 billion to $11 billion in 2005, up from $5 billion in 2004. While Bernstein has yet to release an estimate for last year’s volume, others believe policies valued at between $14 billion to $16 billion were sold in 2006. Full Story

State Says Dismissal Motion 'Lacks Merit'

The outcome of a lawsuit against one of the biggest players in the life settlement industry, alleging bid-rigging and “pervasive fraud,” is being watched closely by investors, brokers and regulators. The lawsuit against Coventry First by former New York Attorney General Eliot Spitzer charges the company defrauded policyholders by scheming with brokers to suppress prices. In return for withholding higher bids from competitors, brokers pocketed “co-brokering” fees, the suit said. Full Story

Colombian drug cartel members laundered money through life settlement policies purchased from a now-defunct company, according to a U.S. District Court filing in Florida. Full Story

• NASD Issues Consumer Alert about Life Settlements
• Two Convicted of Fraud Face May Sentencing
• Secondary Market Pioneer Purchased
• Fund Management Group Launches New Share Class for Investors
• Life Insurance Industry Publishes New Newsletter on STOLIs
• Life Insurance Trade Group to Expand Membership Categories
• Life Settlements to be Discussed at Insurance Conference
• LISA Leader to Participate in Panel
• Executive Leaves Canadian Life Settlement Company
• Australian Life Settlement Fund Grows Assets by 700%