Alternative Asset Opportunities Warns On Cost Of Insurance Increases

Wed, 11th May 2016 15:08

LONDON (Alliance News) - Alternative Asset Opportunities PCC Ltd on Wednesday warned it may face a rise in the cost of insurance which could have a negative impact on its net asset value.

The company, which invests in traded life interests on the lives of US citizens, said a small number of insurers have recently applied "aggressive" cost of insurance increases, governing applicable premium rates on policies.

So far, the company said it has only received one notice of such an aggressive rise from Banner Life Insurance Co, but it has now been advised by its investment manager that a further six policies issued by Transamerica Life Insurance Co may have substantial increases imposed.

This, if implemented, would raise the future premiums payable on these policies 97% and would take effect between June and October this year. This could hit the company's net asset value by around 5.0%, Alternative Asset Opportunities said.

Shares in the company were down 1.6% to 45.25 pence.

By Sam Unsted;; @SamUAtAlliance

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