January 15, 2009
Volume I, Issue 2
Inside this issue:
Longevity trading 2
Yields to Life 3
Expectancy
Longevity Market 7
Spreads
Credit Watch 8
Editor & Publisher
Brian C. Dorr
Contributing Editors
Anne K. Zand
Keith M. Feldman
Carline B. Gele
Managing Editor and
Writer
David C. Dorr
LIFE-EXCHANGE trade
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Copyright @2009 Life-Exchange, Inc. All rights reserved.
Trade Report
Month In Review
Thanks to all of our clients new
and old for the great feedback from the
launch of our first issue. It seems the con-
sensus out there is that trade data on a
monthly basis rather than a bi-monthly basis
would be more useful to everyone since it is
a lot of information to digest every two
weeks. Our trade report will now be pub-
lished only once a month around the 15th
and we are also adjusting our subscription
fee accordingly from $500 per month to
$250. Those of you that have already sub-
scribed will see this reflected in your billing
statements.
Also many of you asked for a de-
scription of our method for collecting and
analyzing the data so we have attached to the
last page of this report a description of our
procedures.
We also would like to announce
the addition of a medical underwriting team
to Life-Exchange. With the dramatic
changes in life expectancies we feel that is
more important than ever to make sure
medical records are reviewed and summa-
rized by a professional so that when they are
submitted to the life expectancy underwrit-
ers they are accurately underwritten. I was
shocked myself to learn how many errors
can be prevented by taking this simple step.
The last part of the year was quiet
compared to years past where we usually see
funds rush to complete trades and count
them for their year end. This was no doubt
due to the market still digesting the changes
in life expectancies and adjusting their pric-
ing models accordingly.
Our community of buyers and
sellers certainly feel much more optimistic
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about Q1 2009 than Q4 2008 and we’ve cer-
tainly noticed a significant uptick in volume.
Many auctions that we advised clients to wait
on until the first of the year have been re-
vived and many brokers that we speak with
have also indicated that deals that were on
edge last year may be coming back.
Yields are still very high reflective of
the fact that it is a buyer’s market right now.
We suspect that yields will drop by at least
100bps over the next 90 days as buyer’s be-
come more competitive with one another
again. There is already talk amongst some of
the bigger buyers of coming in and trying to
“buy up” the market. With spreads as wide as
they are right now there is certainly room for
a well capitalized player to do just that.
We believe this year will be signifi-
cant for our market as the bridge between the
capital markets and insurance markets sees
more traffic. In that spirit we have repub-
lished here a timely piece that was written in
2007 and published in the Journal of Struc-
tured Finance.

Longevity Trading: Bridging the Gap Between the Insurance
Markets and the Capital Markets
Introduction
Trading is a fundamental
part of commerce and an elemental
part of any strong economy. The
recent ability to trade longevity risk
through the use of life settlements,
whether for speculation, investment,
or as a hedge has far reaching impli-
cations for the entire financial sec-
tor.
Currently, there are two
active markets that trade in life set-
tlements: the secondary market and
the tertiary market. The secondary
life insurance market is where a life
insurance policy first enters the mar-
ketplace. Typically, these policies
are brought into the market via a life
settlement broker whose fiduciary
responsibility is to market his client’s
policy to multiple buyers and to
obtain the highest bid. Developing
at twice the speed of the secondary
market is the growth of the tertiary
market. The tertiary market is
where individual policies and portfo-
lios of policies come back into the
market and are traded between fi-
nancial institutions.
Technology: Meeting the Needs
of the Secondary Market
Two major road blocks
have slowed down the growth of
trading in the secondary market: the
lack of effective tools to facilitate
transactions and the lack of transac-
tional transparency. It is noteworthy
that while the majority of the life
settlement industry is backed by
technologically sophisticated, For-
tune 500 financial institutions, the
technological sophistication of the
life settlement industry itself is anti-
quated and highly inefficient. Policy
transactions continue to be labor
Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766
intensive, cumbersome and disorgan-
ized undertakings. There is significant
duplication of work, inappropriate
policy transactions, state regulatory
and HIPAA violations, miscommuni-
cation, and poor follow through; all of
which contribute to a highly inefficient
and un-equitable marketplace.
By providing the industry
with secure, business-to-business trad-
ing platforms specifically designed for
life settlement transactions, online
platforms such as Life-Exchange ad-
dresses many of the inefficiencies and
shortcomings currently facing this
industry.
Equal Access and Greater Market
Liquidity
One of the primary barriers
preventing fluid trading in this asset
class has been a fundamental misun-
derstanding of the complexity involved
in life settlement transactions and the
lack of transactional tools to facilitate
these transactions. As in the mortgage
arena, life settlement transactions are
based upon a complex set of origina-
tion documents, closing documents,
state regulations and underwriting. As
an asset class, life settlements are much
more analogous to mortgage backed
securities than they are to equities.
Prior to the recent advent of
trading platforms for life settlements,
the process for managing these com-
plex transactions has been a manual
undertaking with sellers submitting
and negotiating life insurance policies
via email, phone and fax. Because of
the inherent inefficiencies of these
manual back-office operations, it has
been difficult for sellers to efficiently
maximize a policies’ value by matching
it with the most appropriate buyer in
the marketplace. Currently, some life
Page 2
settlement sellers have access to only
a handful of buyers, whereas others
may have access to as many as thirty
buyers. Online trading platforms
provide a means for sellers to submit
their client’s policy to the entire uni-
verse of qualified buyers and sell
them to the highest bidder. Unlike
manual operations, independent
online trading platforms can ensure --
and verify -- that a seller has indeed
received the highest offer in the mar-
ketplace while maintaining compli-
ance with stringent state regulations.
On the buy side, online ex-
changes allow buyers to significantly
cut their operating costs by providing
a means to sort and filter through
thousands of policies in minutes –
not months; and thus focus their
resources on policies most appropri-
ate to their needs.
Continued on Page 4.
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 Page 3

Yield to Life Expectancy

When we see policies traded in the secondary market we often see new buyers forget to take into account the
premium (in yield not payments to keep policies in force) that should be received for longer investment horizons i.e.
longer life expectancies. There are 4 reasons we think this should be taken into consideration. 1. The most obvious is
naturally the time value of money. 2. The historical trend of mortality improvements as evidenced by recent revisions
to the industry’s most widely used underwriting tables. 3. The credit risk that exists over longer periods vs. shorter
periods. 4. The currency risk associated with the long term potential decline of US dollar denominated contracts/
assets.
You can see by looking at the chart below that the yield curve flattens out in the longer life expectancy ranges.
Buyers active in the life settlement space also know that competition is limited in policies where insured’s have LE’s
beyond 14yrs so this would be an additional factor suggesting that the yield curve should steepen significantly from
where it currently is today.

Comparative Yields to Life-Expectancy Chart

December Comparitive Yields‐to‐life‐expectancy
17

16

15

14
AVS
R
I/ 13
R
Fasano
ld
e
i 12 21st Services
Y
ISC
11
EMSI
10

8
4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0
2 3 4 6 7 8 9 0 2 3 4 5 6 8 9 0 1 2 4
1 1 1 1 1 1 1 1 2 2 2 2

As you can see IRR’s for AVS have lowered back below 21st for Life expectancies above 144 months. The
reason for this is that this data incorporates the changes in underwriting tables from AVS’s latest update from mid No-
vember. Early data for the next issue already suggests that Fasano, EMSI, and ISC IRR’s will continue to come down
as well. We also predict that IRR’s for AVS will continue to drop below 21st for all month ranges as the market contin-
ues to accept the new changes.

Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766

Longevity Trading - Cont.
Continued from page 2.
Furthermore, because buyers can
place their capital faster and with
greater efficiency, they are thus able
to increase their investment yields.
Bringing Equal Access to the
Entire Market
Life settlement sellers and
buyers have traditionally shied away
from working with smaller face
value policies because the cost to
process these policies generally out-
weighs the return. Online exchanges
however, offer an ideal solution to
significantly lower the fixed costs
associated with brokering, under-
writing, and purchasing life insur-
ance policy and consequently pro-
vide the opportunity for smaller
policies to be brokered on the sec-
ondary market. Typically, the own-
ers of smaller face value policies can
benefit the most from the sale of
their policy since they are often not
as financially secure as someone
who owns a large face value policy.
Privacy and Security
Within the life settlement
industry, email is used far too often
for the transmission of sensitive
medical information and this pre-
sents two problems. First, and most
obvious, is the fact that email is not
a secure method for transmitting
medical information and it is not
HIPAA compliant. Second, medical
records are large and often require
multiple emails to be sent in order
to transmit just one individual’s re-
cords. Should one of these emails
not be received -- which happens
regularly -- it can have a major im-
pact on the mortality assessment of
the insured. The typical conse-
quence of such an impaired mortal-
Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766
ity assessment is that the life expec-
tancy ends up being longer than it
should and consequently lowering
the offer to the seller.
In order to address these short com-
ings within the industry, trading
platforms such as Life-Exchange,
offer their members secure hosting
capabilities to store, retrieve and
exchange medical data in a manner
that maintains compliance with both
HIPAA and state regulations.
Assured Integrity of Documents
With traditional manual
back-office operations, it is not un-
common for sellers to send incom-
plete policies in various formats to
providers via FTP sites, email and
fax. Furthermore, it is not uncom-
mon for sellers to submit policies
with incorrect information or infor-
mation missing altogether; such as
not informing the buyer of the next
premium amount or the next pre-
mium due date. With electronic
document management capabilities
and backend databases, online trad-
ing platforms are ideally suited to
providing a standardized format for
all policy information and documen-
tation.
Online exchanges allow
sellers and buyers have access to the
correct documents and the ability to
make and communicate changes
24/7 from any where world via an
Internet connection. In addition,
with their tracking and audit feature,
online exchanges ensure account-
ability by addressing the confusion
caused by different members of an
operation making changes to docu-
ments and not communicating those
changes explicitly.
Page 4
Regulatory Compliance
In addition to dealing with
multiple documents amongst multiple
parties, there are also a multitude of
regulatory bodies that are specific to
this asset class that must be dealt with.
For example, each state requires differ-
ent types of licensure and licensing re-
quirements can vary for brokers, pro-
viders, financing entities, agents, etc.
Typical examples of regulatory blunders
include brokers shopping policies in
states where they are not licensed to sell
policies, as well as brokers sending poli-
cies to providers who are not licensed
to view such policies. As the life settle-
ment industry grows in both volume
and complexity, there will be an increas-
ing need for the facilitation of state
compliance. Here again, electronic
trading platforms provide the ideal solu-
tion to monitor, update, and report
upon regulatory requirements of both
sellers and buyers.
Transparency and Disclosure
One of the primary issues
effecting the growth of this market has
been the complete lack of transparency
and disclosure with regards to life settle-
ment transactions. Perhaps most dis-
turbing, is the fact that traditional life
settlement operations are far from
transparent and prone to back office
politics and unethical practices. As has
been reported widely in the press of
late, several major industry participants
are facing investigations by state attor-
ney generals and state insurance depart-
ments for various forms of fraud.
For example, it is not uncom-
mon for multiple sellers to try and sell
the same policy, and as a consequence,
buyers are often in the position to dou-
ble bid on the same policy held by dif-
ferent sellers.
Continued on next page

Longevity Markets - Cont.
The unfortunate consequence for
the policy owner is to drive the fair
market price for their policy down
unfairly. Similarly, because tradi-
tional life settlement operations of-
fer little or no transparency as to the
true nature of the bidding activity on
a policy, some brokerage operations
simply misrepresent bids in order to
artificially inflate prices. Another
issue regarding transparency is lack
of disclosure. This takes the form
of brokers not fully disclosing their
commissions to their clients, as well
as not disclosing the gross offer
received for the client’s policy.
Of all the areas where elec-
tronic trading platforms can benefit
the secondary life insurance market,
transparency and disclosure is
probably the most compelling justi-
fication for their use. With regards
to double bidding for example, elec-
tronic exchanges can insure that a
seller has exclusive control over
policy, which effectively eliminates
double bidding. With regards to
transparency of gross offers and
bids made on a policy, by their very
nature, online trading platforms
require that all bids are transparent
and displayed to all auction partici-
pants in real time.
The Tertiary Market
Though the secondary
market for life insurance has only
recently developed, institutional
investors and others involved in the
life settlement industry are witness-
ing early signs of a very robust terti-
ary market for life settlement poli-
cies. The tertiary market allows
investors an arbitrage in the market-
place where a policy can be bought
at one price and then immediately
sold at a higher price. The overall
effect of these spreads increases the
Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766
purchasing power of the secondary
market by freeing up cash which
ultimately benefits the consumer.
The ability to sell a life insurance
policy multiple times provides insti-
tutional buyers with the opportunity
to buy policies, hold them for vari-
ous lengths of time, and resell them
instead of holding them until matur-
ity. Specifically, for these investors
who are seeking either new invest-
ment opportunities or to diversify
their existing investment portfolios,
a tertiary market for life settlements
offers a means to minimize risk in a
new class of investments.
Securitization
Paralleling the course of
mortgage backed securities, the ulti-
mate evolution of the life settlement
market is securitization. Indeed,
over the past several years, several
institutions have completed success-
ful securitizations of life insurance
portfolios. The market is also seeing
a number of participants develop
uniquely tailored securitization
transactions being built upon deriva-
tive products, such as mortality
swaps, that have huge implications
for the overall industry. Clearly, as
life settlements continue to trans-
form the way wealth management
professionals serve their high-net-
worth clients, the potential for secu-
ritization of this asset will continue
to garner the interest of investors
throughout the world.
Regardless of the form of securitiza-
tion, in order for this sector to flour-
ish, all these financial instruments
will require that an electronic ex-
change is in place to centralize and
facilitate these trades and transac-
tions. For example, future trading
tools will likely involve real time
portfolio analysis which will enable
Page 5
Upcoming Events
01.24.2009-01.28.2009
The International Forum 2009 An-
nual Meeting in Los Angeles, CA
www.int-forum.org
01.26.2009-01.27.2009
FRA’s 5th Investors Summit on the
Secondary Market in New York, NY
www.frallc.com
01.28.2009-01.30.2009
FRA's 5th Insurance Linked Securi-
ties Summit in New York, NY
www.site-members.com/
eventwebsites/usils09
traders to make bids not only based on
the individual underwriting for a policy,
but that will also take into account
other policies already held within the
trader’s portfolio. Trading tools such as
real time pricing will also significantly
improve the liquidity of the market and
provide a huge boost towards complet-
ing securitizations since real time ana-
lytical tools will make it easier to acquire
a pool and properly diversify it for a
securitization. Other future develop-
ments will likely include proper clearing
and real-time settlement capabilities,
similar to the way the DTCC works for
the stock markets. Certainly, before the
life settlement industry could potentially
match the liquidity of other markets,
such as equities, there will need to be an
industry accepted mechanism in place
for clearing and settlement.
Continued on next page.

Longevity Markets - Cont.
The Impact of Longevity Trading
on the Primary Market
With their low betas and
high alphas, life settlements have
seen an influx of capital from the
financial markets, both domestically
and abroad. However, as Wall
Street capital floods this market
looking for short term gains, many
people are overlooking the larger
overall impact of life settlements on
the financial world, namely the abil-
ity to spread risk.
Insurance, of any type, is
all about risk and life insurance is
designed to cover the risk of an indi-
vidual dying and the financial impact
that his or her death will have. In
exchange for taking on this risk, life
insurers collect premiums and hope
to profit by accurately calculating
that the premiums they take in and
invest will exceed the money they
pay out in death claims. Today,
similar to the way banks use syndi-
cated loans to diversify and reduce
risk, most carriers offset large por-
tions of their risk to reinsurers.
However, now that the capital and
insurance markets are merging, there
are many new innovative ways to
diversify risk that are more efficient
and cost effective than simply
spreading risk to reinsurers and the
ability to spread this risk into the
capital markets depends heavily on
the ability to effectively and effi-
ciently trade risk.
Not only does a liquid sec-
ondary and tertiary market in life
insurance create greater financial
planning options for people pur-
chasing life insurance in the primary
market, but a liquid market in life
insurance also provides insurers the
ability to hedge their own underwrit-
ing. For example, for policies where
a carrier must adjust their mortality
Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766
assumptions they made in their
original underwriting, by purchasing
life settlements, an insurer can re-
duce the liabilities of impaired
blocks of business. This reduces
risk for insurers and can even pre-
sent opportunities for them to over
hedge mortality risk and lower their
premiums in the primary market to
be more competitive.
The Future of Longevity Trading
As validation of the impact
that life settlements are having on
the financial sector, a consortium of
capital market players, including
Bear Stearns, Goldman Sachs, Mi-
zuho, West LB, Merrill Lynch,
CSFB, and UBS AG, have recently
formed the Institutional Life Settle-
ments Market Association (ILMA).
ILMA is a not-for-profit trade asso-
ciation which was formed to educate
consumers, investors, and policy-
makers about the benefits of the
mortality and longevity market-
places. Some of ILMA's published
guiding principles include promoting
transaction transparency, protecting
the identity of insureds, supporting
longstanding insurable interest prin-
ciples, and advancing public under-
standing of the life settlement and
premium finance industries. In ad-
dition, ILMA seeks to establish in-
dustry best practices and disclosures,
to encourage standardization of
documents, and to advocate for the
appropriate regulation of the rapidly
evolving life settlement and pre-
mium finance marketplace.
The future of longevity
trading will provide the ability for
new types of products to be devel-
oped that will benefit both the
wholesale and retail investors alike.
Currently, life settlements are pri-
marily an investment of niche hedge
Page 6
funds, investment banks, and private
equity firms. Over the next couple of
years, we will likely see a trend towards
products designed specifically to
broaden these wholesale markets to
include endowments, pension funds and
other financial institutions. An example
of a wholesale product could be a bond
or CDO (collateralized debt obligation)
made to meet certain credit rating and
risk requirements of pension funds or
endowments. Retail products might
include mutual funds that invest in mul-
tiple life settlement backed bonds and
offer investment opportunities in the
fund to the everyday investor.
Both wholesale and retail life
settlement products will provide a great
addition to any portfolio because they
offer added diversification in a non-
corollary asset class that is less likely to
experience market volatility or the loss
of investment. Indeed, all life settle-
ments are backed by A rated or better
life carriers and never in the history of
insurance has an A rated carrier failed to
pay out a death claim due to insolvency.
Conclusion
Trading in life settlements and the fu-
ture of the sector -- a liquid life settle-
ment market -- will demand that there
are mechanisms in place to assist in the
efficient transfer of risk and assets.
However, like any emerging market, it
will take time for standards to emerge
that are adopted by all industry partici-
pants.
As life settlements enter their third dec-
ade, successful trading platforms for
this sector are addressing the demands
of both the insurance and the capital
markets and as a consequence, we are
seeing standards begin to emerge which
significantly help to preserve the integ-
rity of the marketplace and the value of
life insurance; today and into the future.
 Page 7

Longevity Market Spreads

This section shows a comparison of 10yr (LE) life settlement IRR’s vs. different bench marks such as 12 month LI-
BOR, 10yr treasuries, and an index of 10yr investment grade corporate bonds.

20 10yr US Treasuries
15
Spreads in longevity markets are currently drop-
ping after several months near highs of 1400+bps.
10 As you can see our December data suggests IRR’s
are starting to come back down for the first time
5 in 8 months. We believe this is an indication that
buyers are becoming comfortable with the table
0 changes that occurred for both 21st and AVS.

10yr LS 10yr Treas 10yr Tre/10yr LS

12mo LIBOR
20
Since LIBOR is used as a benchmark to track the
15 cost of borrowing and lending we have included in
10
this chart to track correlations between lower LI-
BOR rates and life settlement IRR’s. It is clear
5 that although rates have been coming down this
has not translated into lower IRR’s in life settle-
0 ments. This is not unique to our asset class as
many borrowers have found it difficult to obtain
financing despite lower rates.

10yr LS 12mo LIBOR 12mo LIBOR/10yr LS

10yr IG Corporate Bonds

20
This chart shows the relationship between 10yr
15 life settlements and a comparative index of 10yr
investment grade corporate bonds. You will notice
10
that spreads diverge the least in this chart. The
5 reason is that all life insurance contracts have an
inherent credit risk in them similar to corporate
0 bonds. A life insurance contract is an obligation
for a company to pay a claim in the event of a
death and should that carrier become insolvent
then there is a risk that they may not be able to
meet that claim. See our Credit Watch section for
10yr LS 10yr IG Corp 10yr IG Corp/10yr LS
more on this.

Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766
 Page 8

Credit Watch
Credit Watch is a list of Life Insurance Carrier’s that have been placed on “Credit Watch” by the underlining
Rating Agencies. Credit Watch is when an Insurance Carrier has been downgraded or is being watched for possible
downgrade. The Ratings listed below are the latest data from the two rating agencies. All ratings listed can found on the
public Web site of the underlining rating agencies. This information is the most accurate at the time of publication.

ICR - BEST ICR - S&P State of

Insurance Carrier Long Term Long Term FSR - BEST FSR - S&P Domicile
AIG Life Insurance Co a/Negative A+/Watch Dev/-- A/Negative A+/Watch Dev/-- DE
Beneficial Life Insurance Co a/Negative A/A-1 Negative A/Negative A/A-1/Negative UT
CIGNA Life Insurance Co of NY a/Negative A/Negative NY
Cincinnati Life Insurance Co a+/Stable A+/Negative/-- A/Stable A+/Negative/-- OH
Connecticut General Life Ins Co a/Negative A/Negative/-- A/Negative A/Negative/-- CT
Constitution Life Insurance Co bbb-/Stable B+/Stable TX
Farm Bureau Life Insurance Co a-/Negative A/Negative/-- A-/Negative A/Negative/-- IA
FBL Financial Group Inc bbb-/Negative BBB/Negative/-- NR/--/-- IA
First Central Nat Life Ins Co of NY aa-/Negative A+/Negative NY
First SunAmerica Life Insurance Co a/Negative A+/Watch Dev/-- A/Negative A+/Watch Dev/-- NY
General Fidelity Life Insurance Co a-/Negative A-/Negative SC
Genworth Life and Annuity Ins Co aa-*/Negative AA-/Negative/A-1+ A+*/Negative AA-/Negative/-- VA
Genworth Life Insurance Co aa-*/Negative AA-/Negative/A-1+ A+*/Negative AA-/Negative/A-+1 DE
Genworth Life Insurance Co of NY aa-*/Negative AA-/Negative/-- A+*/Negative AA-/Negative/-- NY
Hartford Life and Accident Ins Co aa-/Negative AA-/Stable/-- A+/Negative AA-/Stable/-- CT
Hartford Life and Annuity Ins Co aa-/Negative AA-/Stable/-- A+/Negative AA/Stable/-- CT
Hartford Life Inc a-/Negative A/Negative/A-1 CT
Hartford Life Insurance Company aa-/Negative AA-/Stable/A-1+ A+/Negative AA-/Stable/A-1+ CT
Humana Ins of Puerto Rico Inc bbb-/Negative B+/Negative PR
Liberty Union Life Assurance Co bb/Negative B/Negative MI
Reassure America Life Insurance Co aa/Negative A+/Negative IN
The Rating’s listed above are the latest data from the two rating agencies. All ratings listed can found on public Web site of the underlining rating agencies.
This information is the most accurate at the time of publication.

Copyright @2009 Life-Exchange, Inc │ 2001 Biscayne Boulevard Suite 2102, Miami, Florida 33137 │ (866) 907-9766
 Data Aggregation and Analysis Methodology 
Aggregation 

We acquire data through a multitude of channels and each channel contributes different amounts.  For 
a breakdown of data sources and the percentage of data each one is responsible for please refer to the 
chart on page 2.  We look at the data we receive as layers for performing our analysis.  Below are the 
three types of data layers we use and how we integrate them. 

Primary Data Layer 

The primary data layer comes from closed and funded transactions that have occurred via Life‐
Exchange, through life settlement providers/ funders that can document actual transactions that have 
closed or have underwriting data available on them.  We also receive this data from life settlement 
brokers, general agencies, broker/dealers, and financial advisors. 

To be considered primary data the information must include supporting transaction documentation.  
This documentation may include but is not limited to purchase & sale contracts, life expectancy reports, 
pricing outputs from Milliman or other in‐house software, verification of coverage both pre and post 
closing, escrow agreements, wire verifications, etc. 

Secondary Data Layer 

Secondary data is typically made up of spreadsheets that contain transaction details within them.  We 
will conduct random sampling and cross check with other contributors either primary or secondary data 
to verify accuracy. 

Tertiary Data Layer 

Tertiary data is information we gather via phone interviews and through email surveys.  This data is the 
most difficult to verify but is the most useful for gauging market sentiment and has at times been very 
revealing regarding pricing and industry volume. 

Composition of Data 

Currently the typical composition of data is approximately 35% primary, 45% secondary, 20% tertiary. 

Analysis 

Analysis of policies and other data is both science and art.  When pricing there are a multitude of inputs 
that can affect the outcomes.  When we analyze the data we will in every transaction possible price 
policies using various IRR’s, crediting rates, and with multiple life expectancy reports.  There is an infinite 
number of ways to crunch the data and as different market preference develop or evolve we will adjust 
accordingly. 
 Data Sources
Life‐Exchange Auction Sales Reports
Life Settlement Providers
Funders and pool owners (also includes lenders and financing entities)
Law firms
Life Settlement Brokers
Service Providers
Life Insurance Settlement Association
State Insurance Departments
Other sources of publicly available information
4% 3% 2%1%

9%

15%
2% 36%

28%

 
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