Life Settlement Bond Offering
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Neal Ecker
- Insurance Journal Enthusiast
- Posts: 10
- Joined: Tue Sep 01, 2009 11:28 am
Life Settlement Bond Offering
I have an opportunity for a client who is planning a $600M, 10 year bond offering which will be purchased entirely by a single entity. A portion of the proceeds from the offering will be used to purchase a portfolio of approx. 300 life settlement policies on which the client owns an irrevocable option. These policies collectively have circa $2B death benefit, an average age of 78, and LE of less than 10 years. In order to obtain a rating for this offering, the rating agency is requiring 2 policies; one being a 10 year policy that will pay aggregate sums up to $250M as needed in the unlikely event of cash flow deficiencies and the second is needed specifically for possible legal expense. Target premium for the 2 policies is $30M-$35M. Appreciate any thoughts anyone might have.