14 May 2010 11:40
14 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 Board is pleased to announce that the Company has received its first firm orders from institutional investment clients based in the Far East to purchase of Senior Life Settlement policies with a total final benefit value of approximately USD 30.0 million.
Insetco is in the process of acquiring the first of the policies through a Special Purpose Trust (the "SPT").
Under the terms of the licence granted to Insetco by Dematco Inc., Insetco will receive a net payment of USD 900,000 for its work in sourcing and structuring the transactions. The fees will be paid upon investment by the SPT which is expected to be completed within the next two months.
Commenting on this transaction CEO Chuck Woodworth, in New York, said " I am delighted that we have received our first order and that the transaction flow is now underway, less than two months after restructuring the Company and the restoration of trading on AIM. This is the first stage in the implementation of the business strategy for the Company as set out in the recent Circular to shareholders, and I hope to be able to update shareholders shortly with details of further orders."
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