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SPV's - Solvency II

See pages 125 - 127 in below report

Alternative Risk Transfer and Insurance-Linked Securities:
In life-insurance securitization, we might see more embedded value securitizations as Solvency II does not allow insurers to recognize the present value of future profits (PVFP) in their capital calculations, thus encouraging them to securitize it (Linklaters, 2008).

Although non-peak risks (such as motor insurance) are of lesser importance for insurers in the Solvency II framework, their securitization could be demand-driven (i.e., by investors) rather than supply-driven (i.e., by insurers).
Another consequence of Solvency II is the preferential treatment of risks transferred to SPVs within EU jurisdiction (such as Ireland or Luxembourg) rather than transferring it to an SPV outside EU jurisdiction.

Https://www.ivw.unisg.ch/_/media/internet/content/dateien/instituteundcenters/ivw/studien/ils-2015.pdf

Extract from Dirk Lohman on a AON Securities ILS Report interview dated Sept 2018

Last, not least, I think that the Solvency II framework provides opportunities to develop an insurance-linked hybrid form of capital to provide insurance companies with out of the money capital to protect them against a dramatic movement in claims or reserve development across their entire portfolio (whole account) or for specific lines of business.

see page 36 below:

http://thoughtleadership.aonbenfield.com/Documents/20180905-securities-ils-annual-report.pdf
__ _______________________

Dirk Lohmann has more than 30 years of management, underwriting and consulting experience in the insurance and reinsurance industry. He began his career with Hannover Re in 1980 where he spent a total of 17 years in various capacities ending ultimately in the position of Executive Board Member. During his time with Hannover Re, Mr. Lohmann was instrumental in transforming the company from a small following reinsurer into the world’s 5th largest professional reinsurer.

https://www.secquaero.com/ecm/ecm.cgi?c=dirk-lohmann.html

can you get me into that one as I recall being in there, but by error cancelled myself out....thanks

is that the PM chat room?

Thanks

that part of the rns does say they will be making them at YE 18 - could be 1Q19

The Directors expect to make further announcements in due course

Hi Atty,

Have seen those calcs before - they are not from the company calculations / estimates - they are from a twitter poster - who even asked some other people if they are accurate - but never got a reply - They are rough guesses of potential value on a $50m contract

There is no $50m contract rns announced, so far just a $10m JV with SL Invsts - so the fees will most probably be halved - but we need confirm of that once the fund is set up & DWC has attracted the investors to invest into this first

Your post below is not being economical with the truth, now is it.

"Well from the conversations Ive had 1 or 2 contracts expected before year end, so all to play for. Could send the price over 30p with a couple of £30m contracts."

remember ist's a JV so $10m is the total value x FV 4 or 5 x but all fees would be JV / shared too, so don't forget that - but we all need to see the JV agreement / rns info on how they will split fees for this $10m fund

Are you on twitter ?

Thanks

There are a number of institutions looking at the life settlement industry right now as a place to pursue attractive investment returns in an historically low-yield environment,” said Darwin M. Bayston, CFA, president and chief executive officer of LISA. “Moreover, we have tremendous upside opportunity in the years ahead, as more than 8 in 10 seniors are still unaware they can sell their life insurance policies.”

https://globenewswire.com/news-release/2016/10/19/880814/0/en/Consumer-Demand-for-Life-Settlements-Increasing-According-to-Speakers-at-Fall-Life-Settlement-Conference.html

SL Investments corporate brochure

https://www.slinvest.co.uk/media/62625/sl_corporate_brochure__final_.pdf

TracyL, Arden had a 260p TP before they removed it earlieer this year, so doubt it will be 300p next year.

However they are very cheap, so far in this market considering where they came from & their potential.

They just need those confirmed orders in 2019, & no more delays, and hopefully they have enough cash funds until revenue starts coming in 2019

That's because many didn't bother reading into Sl Investments & all tbe details about them & their 25 year history. More fall them

as you say it's a change of shareholding control, and happened afer Alpha bought ALM on the 18 July 18

Alpha Growth plc (LSE: ALGW), the financial services specialist in the growing Senior Life Settlement ("SLS") asset class is pleased to announce the acquisition of Alpha Longevity Management Limited ("ALM").

22 Nov 2018 Notification of Christopher Heier as a person with significant control on 14 August 2018

https://beta.companieshouse.gov.uk/company/09734404/filing-history

Thanks checking

can you please post the web link this came from & I shall take a better look at this today

Thanks

Interesting read, how Life settlements can protect investors from Longevity risk, hopefully Alpha and SL Invest can apply this going forward:

Tranen Capital seeks to protect life settlements investors from longevity risk

Interesting news this morning from Tranen Capital, a provider of alternative investment opportunities particularly around life settlements, who have issued a press release about their life settlements fund which they say is the first to offer investors protection against longevity risk.

They’ve launched a note program which allows investors to link protective investments such as longevity risk insurance to their life settlement policies investment. It’s an interesting way to allow investors to hedge the longevity risks associated with having a stake in a life settlements fund and should help to increase investor interest.

“Investors, such as pension plans, endowments, family offices, and high net-worth individuals, have wanted access to the life settlements market, but have expressed the need to have additional protection measures in place. Tranen Capital brings a suite of protection measures that can be elected based on the risk appetite of each investor,”

Http://www.artemis.bm/blog/2011/01/24/tranen-capital-seeks-to-protect-life-settlements-investors-from-longevity-risk/

Patrick McAdams of SL commented:

"The combination of Alpha and SLIM will be a strong combination unique in the marketplace. We look forward to working with Danny Swick, Gobind Sahney and their team towards the success of the Fund."

Https://www.investegate.co.uk/alpha-growth-plc--algw-/rns/sl-investment-management-joint-venture/201811210700059722H/
_ __________________ _____________________________________________________________

Patrick has over 20 years’ experience in the Financial Services Industry. His particular focus in recent years has been product design, structuring, launch and ongoing management of a variety of Investment vehicles domiciled in the UK, Luxembourg, Jersey, as well as the Cayman Islands.

He has been instrumental in the pricing and negotiation of several large institutionally owned portfolio transactions of US Life Settlements, having been responsible for the acquisition and management of over $3 billion in face value of US life insurance policies. Patrick is a leading and well revered global expert in the US Life Settlement market.

Https://www.blackoakinvestors.com/en/how-do-i-invest/

SL Investment Management is the only known UK based Secondary Life Asset Manager with its own in-house Actuarial Team. We offer our clients a fully rounded service in an industry where asset valuation is at the heart of delivering investor returns.

Aggregating policies into investment portfolios that will generate value for investors is dependent upon accurate modelling and pricing together with rigorous asset selection.

The critical task of assessing the value of policies for acquisition, and portfolios in fund, is achieved by using an actuarially-based proprietary valuation software, designed and built in MoSes (a modelling development environment licensed from Towers Watson, for use by actuaries and risk professionals). This bespoke approach enables the risks in using existing off the shelf Life Settlement packages for more complex models, which do not adequately reflect varying features of all policy types and charging structures to be overcome.

SL's proven and unique value-based pricing system makes us an expert in these areas and the in-house actuarial and valuation services team capabilities makes us unique in the market, enabling us to deliver a full service solution to investors from fund modelling & projections, scenario testing, to the generation of pricing criteria and portfolio asset valuations. This capability enables the development of complex projection and allows clients to make informed decisions to achieve their investment objectives.

Https://www.slinvest.co.uk/portfolio-servicing/actuarial-expertise/