INC.L Regulatory News (INC)

RNS Number : 5764M

Insetco PLC

26 May 2010

 

25 May 2010

 

INSETCO PLC

 

Trading Update

 

Insetco PLC ("Insetco" or "the Company") announced in the Circular to shareholders issued on 16 March 2010 that the Company's Investing Policy would focus on the life insurance settlement market, which involves the acquisition of life insurance policies covering the life of one or more individuals with an "ascertainable and limited" life expectancy. The Investing Policy was approved by shareholders on 1 April 2010.

 

The Company announced on 14 April 2010 that it had entered into a licensing agreement with Dematco Inc. ("Dematco"),whereby Dematco has agreed to grant Insetco a licence for the use of a range of software products developed for creating and trading derivative products based on life insurance products.

 

The Board is pleased to announce that it has now formalized an extension to this licence agreement under which Insetco is identify and purchase Senior Life Settlement policies on behalf of investment clients of Dematco for which Insetco will receive an agreed fixed commission. In addition Dematco will staff and resources to Insetco to support the execution of these projects.

 

In addition to the announcement of 14 May 2010 the Board is pleased to announce that the Company has received a further order to purchase Senior Life Settlement policies on behalf of an institutional investment client with a total final benefit value of approximately US$50.0 million.

 

Under the terms of the licence with Dematco the Board expects to receive payments, net of fees due to Dematco, of approximately US$2.0m for its work in sourcing and structuring the transaction announced on 14 May and the addition transaction announced today. The fees will be paid upon completion of the investments, which are expected to be within the next three months.

 

In New York, CEO Chuck Woodworth, said: "We are delighted with this development and with the prospects for an increase in the level of our transaction flow."

 

Contact:

 

Insetco plc

Gary Truman 020 7309 2280

Charles Woodworth +1 212 584 5667

 

Charles Stanley Securities

Nominated Adviser

Russell Cook / Dugald Carlean 020 7149 6000

 

This information is provided by RNS

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