Woodbridge Structured Funding LLC announces new division to purchase life contingent structured settlement transaction. By purchasing a life insurance policy on the customer Woodbridge Structured Funding, LLC is able to purchase non guaranteed payments enabling our customer to sell payments they ordinarily wouldn't be able to sell
Studio City, CA (PRWEB) September 24, 2009 -- Scott Schwartz, Executive Vice President of Woodbridge Structured Funding, LLC announced a new division specializing in what the industry calls out of guarantee payments. Schwartz explains," When someone is awarded a structured settlement it is often guaranteed for a specific period often twenty or thirty years. At that point the settlement will only pay for the life of the settlement owner.
By purchasing a life insurance policy on the customer Woodbridge Structured Funding, LLC is able to purchase non guaranteed payments enabling our customer to sell payments they ordinarily wouldn't be able to sell."
Schwartz further added," We are offering our excellent terms not only directly to our customers but to the structured settlement factoring community as low as 10% to 11% which is unheard of for life contingent deal." Rates will be determined by the term of the transactions as well as the cost to secure insurance.
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Wednesday, October 28, 2009
Thursday, October 15, 2009
Appeal of life settlement securitizations seen as limited
Buzz is building among financial firms about arranging life settlement securitizations, but experts question the structured products' viability as an investment amid a lengthy list of risks and a limited track record of successful transactions.“There are transactions in the pipelines — a lot of them come to our desks — but many of them aren't doable,” said Emmanuel Modu, managing director of the insurance-linked securities group at A.M. Best Co. Inc. “Getting into this asset class isn't trivial, and that's discouraged people from entering the market and securitizing policies.”
Although private investors and investment banks recently have increasingly been analyzing life settlement securitizations as a new revenue source, the concept has been around for more than a decade. The first viatical securitization, which was provided by Dignity Partners Inc., took place in 1995, using policies belonging to the terminally ill.
To date, there has been just one successful life settlement securitization, which took place in January and involved American International Group Inc. More than 2,000 policies in that deal were provided by the Coventry Group, a life settlements firm.
Mr. Modu, who privately rated the AIG transaction, and those at other ratings agencies said that they have seen an uptick in interest about structuring similar deals. But arrangements that meet the agencies' standards for a rating have been scarce.
“What I've seen is that the interest is heating up, but the volumes aren't up,” said Jesse Schwartz, a consulting actuary at Watson Wyatt Worldwide. “Growth may be slow because the asset classes are new and complicated; investors need an extent of technical knowledge to participate.”
For securitizations to be successful, they must amass large pools of policies to provide sufficient diversity among the health conditions of the policyholders in the pool.
Several hundred to 1,000 policies would be sufficient for a single securitized pool, though for many of these securitizations to exist, there would need to be a large influx of seniors who were ready to sell their policies, said Michael McLaughlin, head of the U.S. life actuarial practice for Deloitte Consulting LLP.
Such an undertaking would require a solicitation effort to sign up individuals for coverage and to sell the policies on the secondary market — and that raises the risk of fraud and insuring people just for the sake of selling the policy on the secondary market.
Source
Although private investors and investment banks recently have increasingly been analyzing life settlement securitizations as a new revenue source, the concept has been around for more than a decade. The first viatical securitization, which was provided by Dignity Partners Inc., took place in 1995, using policies belonging to the terminally ill.
To date, there has been just one successful life settlement securitization, which took place in January and involved American International Group Inc. More than 2,000 policies in that deal were provided by the Coventry Group, a life settlements firm.
Mr. Modu, who privately rated the AIG transaction, and those at other ratings agencies said that they have seen an uptick in interest about structuring similar deals. But arrangements that meet the agencies' standards for a rating have been scarce.
“What I've seen is that the interest is heating up, but the volumes aren't up,” said Jesse Schwartz, a consulting actuary at Watson Wyatt Worldwide. “Growth may be slow because the asset classes are new and complicated; investors need an extent of technical knowledge to participate.”
For securitizations to be successful, they must amass large pools of policies to provide sufficient diversity among the health conditions of the policyholders in the pool.
Several hundred to 1,000 policies would be sufficient for a single securitized pool, though for many of these securitizations to exist, there would need to be a large influx of seniors who were ready to sell their policies, said Michael McLaughlin, head of the U.S. life actuarial practice for Deloitte Consulting LLP.
Such an undertaking would require a solicitation effort to sign up individuals for coverage and to sell the policies on the secondary market — and that raises the risk of fraud and insuring people just for the sake of selling the policy on the secondary market.
Source
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