Dematco Announces First Tailor-Made Electronically Tradable Bond Product from Dematerialized Senior Life Insurance Policies
Dematco Announces First Tailor-Made Electronically Tradable Bond Product from Dematerialized Senior Life Insurance Policies
press release
Oct. 17, 2011, 11:22 a.m. EDT
Hedge Fund, Quantus Investment Corp. agrees to convert $200 million face value Senior Life Settlement Policies
ENCINO, Calif., Oct 17, 2011 (BUSINESS WIRE) — Dematco, Inc. DMAT +21.43%(“Dematco”), engaged in the business of dematerializing and converting insurance, and other financial instruments from paper form to electronic form, announces its first transaction arising from the recently announced revenue sharing agreement on October 3, 2011 with Quantus Investment Corp. (“Quantus”), hedge fund manager based in Toronto, Canada.
Dematco and Quantus have agreed to a first contract for the sale and purchase of $200 million face value Senior Life Settlement Policies, converted into electronically tradable instruments structured by Dematco. Tailor-made for Quantus, Dematco believes this is the first such electronically tradable bond product from dematerialized Senior Life Insurance Policies.
Through its wholly owned subsidiary Dematco Group Corp., Dematco expects to generate significant fees under the fee sharing agreement of October 3, 2011, ensuring that Dematco ends the calendar year ending in profit.
Robert Stevens, Dematco Chairman and CEO, commenting on this contract said, “In a market traditionally confined to paper products, we are confident that our new products, generated from dematerialized Senior Life Settlement Policies, will prove to be a landmark in the development of the Senior Life Settlement market.
Tailor-made to the requirements of Quantus and their clients, we can now customize Senior Life Settlements for other funds. We are delighted to be associated with Quantus as together we take a major step forward into this new market for bonds and other instruments based on Insurance products.”
Jamie Spreng, Chairman of Quantus, stated: “We are pleased to move our arrangements with Dematco forward into an order flow from which we expect significant numbers of differing products to emanate, fulfilling the wider financial market criteria that has been missing from this asset class up to now.”
About Dematco, Inc.
Dematco, Inc. is engaged in the business of dematerializing or converting financial instruments from paper form to electronic form. The Company specializes in hitherto untraded or untradeable paper instruments allowing them to be traded electronically on exchanges or exchange platforms on a peer to peer basis.
Forward-Looking Statement
This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the failure to meet schedule, or performance requirements of the Company’s contracts, the Company’s liquidity position, the Company’s ability to obtain new contracts, and the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.
SOURCE: Dematco, Inc.
For Dematco, Inc. Emerson Gerard Associates Jerry Jennings, 561-881-7318 jerry@emersongerard.com
Copyright Business Wire 2011
A&O’s life portfolio sold after principals’ fraud leads to bankruptcy
A&O’s life portfolio sold after principals’ fraud leads to bankruptcy
New York, N.Y.-based life settlement broker sold A&O’s remaining life insurance portfolio for $4.84 million after the company filed for bankruptcy.
Melville Capital (MC) was retained as the life settlement broker and advisor to Jeff Marwil, partner of law firm Proskauer Rose, the trustee for A&O in connection with bankruptcy proceedings.
MC said it produced $3.42 million in this latest sale and $4.84 million in total.
A&O’s principal business was acting as a buyer of existing life insurance policies. But each of the A&O Life Fund entities filed for Chapter 11 bankruptcy protection in Chicago Sept. 2, 2009. Documents filed in the bankruptcy court list more than 700 individual investors as creditors, according to MC.
A&O was “an extremely complicated case” for several reasons, including the alleged fraud by the company’s principals, according to MC Managing Director Doug Himmel.
Brent Oncale, 36, former principal of A&O entities, pleaded guilty Nov. 10, 2010, to a two-count criminal information alleging conspiracy to commit mail fraud and conspiracy to commit money laundering involving losses to investors of more than $50 million.
Oncale admitted to making material misrepresentations and omissions to investors about A&O. He also admitted that he and his co-conspirators failed to inform A&O investors that the vast majority of investor money was used for purposes unrelated to purchasing and maintaining portfolios of life settlements.
Fasano Offers Preview of Upcoming Life Settlement Conference: Investor Focused
Fasano Offers Preview of Upcoming Life Settlement Conference: Investor Focused [Health & Beauty Close - Up]
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Fasano Associates has released the agenda for its October 24thLife Settlement and Longevity Conference, which Fasano’s President, Michael Fasano, described as “Investor Focused.”
In a release, the Company noted event details:
The Conference will include a “point – counterpoint” discussion between Phil Hall, Managing Director of Highland Capital, and Dan Knipe, Life Portfolio Manager at Leadenhall Capital Partners, as to Whether Pension Funds should be Long or Short on Life Settlements. Said Michael Fasano, “The life settlement industry has been trying to attract pension dollars for quite some time now, and there are some compelling arguments in support of that position. At the same time, there are strong arguments as to why a pension fund would reduce its risk exposure by shorting life settlements. So I think this will be a compelling discussion.”
The Conference also includes an analysis by David Miles, CEO of Miles Capitalon the Role of Life Settlements in a Fixed Income Portfolio and a presentation byMatt Popoli, Senior Managing Director of Reservoir Capital, on an Investor’s View of the Life Settlement and Longevity Markets.
Fasano added, “The quality of our presentations this year is the best I have ever seen. Dr. Jochen Russ will be presenting groundbreaking original research on Predictions for Mortality Improvements, and Deutsche Bank’s Pretty Sagoo will talk about the U.K. based Life & Longevity Markets Associations (LLMA) and LLAMA’s Role in Longevity Markets.”
The Fasano Conference will also include a session on Portfolio Valuations by Allan Morris, Director of Risk Management at KPMG, and will open with a presentation by Michael Lovendusky, Vice President of the ACLI (American Council of Life Insurers), on “The Relationship Between Life Insurance and Life Settlements: Can We Get Along?”
The Fasano Conference is a one-day event, with cocktails and dinner following the presentations. With a registration fee of only $395 and eight original presentations, Fasano characterized its Conference as “the best value in the business.”
More Information:
((Comments on this story may be sent to health@closeupmedia.com))
Betty White is ‘Still Hot’
Betty White is ‘Still Hot’
Betty White, the 89-year-old pop culture queen, has again captured the attention of fans with an out-of-the-box project that is an ad for a life settlement company and benefits one of her favorite charities, the LA Zoo.
White, along with bodybuilders, plenty of cheesecake and White music video co-star, British singer Luciana, were on display at the Abbey night club Tuesday for the premiere of the video. It shows White, surrounded by those bodybuilders as she proclaims she is “still hot.”
“It’s a switch for me, I will tell you, but it’s fun and they gave me these nice young men to work with that are built like little brick houses,” said White.
The video is part of the marketing campaign originally designed to reach seniors through social media, but executives say when they heard the song the project snowballed.
The remix now not only brings awareness to “Lifeline,” a life settlement company based in Atlanta, Ga, but also supports one of White’s favorite charities, the Los Angeles Zoo.
“The project brings new exposure to Luciana, supports one of Betty’s favorite charities and creates awareness for life settlements,” said Stephen Terrell, co-founder of Lifeline, in a release from the company.
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Insurance Watchdog Asks SEC To Ban Securitized Life Settlement Products
Life settlements have emerged as one of the hottest “alternative” asset classes out there, but the aggressive way these products are created makes insurance carriers nervous.
The American Council of Life Insurers recently sent SEC Commissioner Mary Schapiro a letter asking her to prohibit the bundling of death benefits into marketable securities.
They don’t like the way the underlying coverage has been aggressively marketed to seniors looking for a way to pay for their life insurance.
In a life settlement, the insured party keeps the policy but “settles” the death benefit by assigning a third party as beneficiary. That party then pays the premiums and cashes the check when the original person dies.
It’s becoming a bit of a craze in markets where investors are struggling to find income sources that aren’t correlated to interest rates or corporate profits.
Unfortunately, as we learned in the mortgage boom, securitization puts massive pressure on the originating entities to keep generating new product.
That means aggressively targeting seniors and other strangers, and that’s what the ACLI wants the SEC to nip in the bud right now.
They want these currently nebulous products to be classed as securities in order to ensure that people who package and sell them to investors are properly regulated. But they also want to exempt individuals who simply want to sell their policy.
In theory, there’s a lot of money in these products for insurance agents, but because institutional investors have a lot more money and better underwriting skills than individuals, mass securitization would hurt the insurers’ margins.
More policies that actually pay out instead of simply being abandoned means more expenses for the carriers.
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Music Video Premiere: Betty White Raps for Luciana in “I’m Still Hot”
Music Video Premiere: Betty White Raps for Luciana in “I’m Still Hot”
press release
Oct. 12, 2011, 8:05 a.m. EDT
Cheesecake Meets Beefcake to Benefit the Los Angeles Zoo
LOS ANGELES, Oct 12, 2011 (BUSINESS WIRE) — Life settlement leader The Lifeline Program today released the music video for “I’m Still Hot” by Luciana featuring Betty White. Available for viewing on thelifeline.com and YouTube, the video features White rapping on Luciana’s No.1 Billboard Dance Club track, along with bodybuilders, cheesecake, breakdancing and a boa constrictor. A portion of the song’s iTunes net proceeds benefits the Greater Los Angeles Zoo Association.
In addition to the online release, Lifeline hosted a launch event last night which featured a live performance by Luciana at The Abbey in West Hollywood where fans watched the video live for the first time.
“We originally started with the idea of a video to reach seniors through social media, but when we heard the song, the project snowballed and we decided to do the remix and have the proceeds benefit one of Betty White’s favorite charities, The Los Angeles Zoo,” said Stephen Terrell, co-founder of The Lifeline Program. “The project brings new exposure to Luciana, supports one of Betty’s favorite charities and creates awareness for life settlements.”
Rebranding itself to a younger audience, The Lifeline Program hopes America’s most trusted celebrity’s bold dance moves and catchy rhymes, re-mixed by Grammy nominated David Aude, will reach out to social media savvy boomer consumers. The 75 million Americans born between 1946 and 1964 constitute a sizable demographic, soon approaching retirement age with infamously lower retirement savings than previous generations. The market-leader in the life settlement industry offers settlements to holders of unnecessary life insurance policies; many times providing much needed financial security to seniors nationwide.
The Lifeline Program is a life settlement company based in Atlanta, Ga., and is a division of Wm. Page and Associates, Inc. Founded in 1989, The Lifeline program offers life settlement portfolio aggregation services and alternative investment opportunities to financial institutions, fund managers and other investment entities. The company partners with insurance agencies and broker dealers to establish life settlement business lines and assists seniors with retirement planning options. For more information on life settlements, contact Stephen Terrell of The Lifeline Program at 770-724-7300 or visit www.thelifeline.com . For the latest Betty White music video news, visit facebook.com/LifelineProgram.
Editor’s Note: A High Definition version of the video is available for download.
To embed the video, paste in the following html code:
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50025718&lang=en
SOURCE: The Lifeline Program
The Lifeline Program Business press contact: David PR Group John P. David, 305-255-0035 john@davidpr.com or Entertainment press contact: Susan Blond, Inc. Perry Krasnove, 212-333-7728 Ext. 117 perryk@susanblondinc.com or LGBTQ & Press RSVP for Los Angeles Launch: Lobeline Communcations Phil Lobel, 310-271-1551 Ext. 13 phil@lobeline.com
Copyright Business Wire 2011
MAPS Releases Newest Life Settlement Model
Oct 11, 2011 9:30:00 AM
SCHAUMBURG, Ill., Oct. 11, 2011 /PRNewswire/ — Today, Model Actuarial Pricing Systems (MAPS), formerly Milliman Pricing Software, released a new MAPS Policy Model v2.0.
The new model, which is web based, integrates the individual policy and portfolio valuation models and delivers a number of significant features, including:
- Unified platform for Policy and Portfolio models
- Flexible portfolio construction and analysis
- Coordinating the management of multiple portfolios under various modeling scenarios
- Tracking and incorporating actual paid premiums since policy purchase
- Enhanced premium projection functionality
- Additional mortality modeling parameters
“We are excited to announce the release of MAPS Policy Model v2.0. The new features are in direct response to our customers’ feedback and reflect our commitment to providing superior client service. This is a major product release. It provides a number of usability enhancements, particularly in the area of portfolio management. Our clients integrate everyday buying and selling decisions into management of their overall portfolio,” commented Win Georg, of MAPS.
In the near future, MAPS intends to release a new simplified individual policy valuation model for life settlement brokers.
About Model Actuarial Pricing Systems (MAPS)
The MAPS software, originally developed by Milliman, Inc. is the most widely used and sophisticated valuation software in the life settlement industry. It allows investors to apply premium optimization and longevity assumptions to an actuarially correct model to calculate present and future value of life insurance policies or portfolios.
Note: For further information or to purchase any of MAPS products please contact Win Georg at (866) 525-7115 or emailInfo@MapsPricing.com
SOURCE Model Actuarial Pricing Systems (MAPS)
Life Partners Holdings (LPHI) Shares Falling as Co. Delays 10Q Filing, Sees Qtr. Loss
Life Settlements Market Remains Unsettled
New report says economic woes, changing regulatory and legal environment will define market.
Insurance Networking News, October 5, 2011
As investors warmed to the life settlement industry over the past decade, the growth presented both opportunity and risk to the life insurance industry.
A new report from Conning Research & Consulting, “Life Settlements: An Asset Class Resets 2011,” examines the current state of the life settlement industry and says the factors underlying the rapid growth that occurred during the middle of the past decade are likely not sustainable and, from an underwriting perspective, not desirable.
The report notes that much of the growth in annual sales was attributable to STOLI (stranger-originated life insurance), which many insurers regard as schemes to evade their underwriting efforts.
“In 2005 and 2006, an influx of capital, primarily from German investors seeking a tax-advantaged investment and the development of STOLI significantly increased annual sales,” the report states. “In 2007 and 2008, an influx of capital combined with growing awareness of life settlements among brokers and policy owners (and the continued sale of STOLI policies) increased annual volumes to a high point of $12 billion. This created a seller’s market as investors sought more policies to build portfolios.”
Now, in the wake of the credit crisis and economic crunch, Conning says market dynamics have inverted and a buyer’s market for policies exists and capital has yet to return to the levels of a few years ago. “As the life settlement industry adjusts to a prolonged buyer’s market, its participants find themselves operating in a changing landscape in terms of acceptable policy criteria, expected returns, regulation and competition,” the report states.
The report credits a new vigilance among insurers regarding STOLI for the diminishing demand, noting that in 2010 that insurers had filed more than 200 civil law suits in various states over alleged STOLI transactions. Moreover, states are also taking an active role in combating STOLI sales by implementing anti-STOLI legislation as well as filing charges in cases of suspected fraud.
“Insurers are making efforts to monitor policies for STOLI. In some cases, this monitoring has led to rescission of the policy or the contestation of claims. This monitoring has also led some insurers to report suspected STOLI cases to legal authorities, which in turn, has led to criminal charges brought against the individuals involved in the STOLI scheme.”
Nonetheless, the report predicts the new rules may eventually induce more consumers, and subsequently investors, into the market.
“The sell-side is no longer the wild west of 2005,” the report states. “Consumer and agent awareness of life settlements has increased. Once the existing pool of settled policies has been repurchased, lapsed or had death claims filed, those investors that remain will return to buying policies. As investors return to life settlements, they will find clearer, and more stable, regulation.”
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