Expansion into Europe - June 2009

Following strong interest from European institutions over the last 12 months, Life Settlements Funds Ltd have been investigating the possibility of opening a second fund. It will be based in Europe and will simplify the tax issues for European investors and potentially some other investors as well. 

For more information please refer to the June 2009 Sum Assured.


AIG Update – we refer to our earlier posting dated 19th September 2008

We have been closely monitoring the current financial crisis and the likely impact on the insurance companies that have issued our policies. To date we are satisfied that the financial strength of the issuing companies, with their statutory pools of capital, have maintained their ‘secure’ ratings and that the different State regulators in the U.S. are monitoring the position closely. A detailed analysis of our portfolio holdings has revealed 54 policies issued by subsidiaries of AIG, with a total face value of US$242,262,186. Again they are separate entities to the holding company that has been given the injection of capital by the U.S. government.

A recent U.S. House of Representatives Hearing heard confirmation that the subsidiaries are solvent and have the funds to pay any policyholder claims.


Life Settlements Wholesale Fund Exposure to Policies Underwritten by American International Group - 19th September 2008

In response to the financial issues faced by American International Group (AIG) Life Settlements Funds Limited would like to make the following statement.

The Life Settlements Wholesale Fund does not own any life settlement policies which are in the name of AIG. The Fund does own 49 policies which are in the name of subsidiaries of AIG. This is out of a total of 568 policies that the Fund owns. The total face value of policies in the name of subsidiaries of AIG is $229,577,187 and this represents a small portion (9.78%) of the total face value of the fund ($2,348,256,119).

We believe that the policies underwritten by the subsidiaries of AIG are safeguarded by statutory pools of capital which are legally distinct and separate from AIG.

In a recent statement released by the National Association of Insurance Commissioners, the position of policy holders is made clear.

"As a holding company, AIG is a separate, federally regulated legal entity that is distinct and apart from its subsidiary insurers. The subsidiary insurers are governed by state laws designed to protect the interest of policyholders. State insurance regulators are committed to protecting the interest of policyholders and will work closely with AIG management and other regulators to fulfil this commitment".

For further detail on this and other releases by the National Association of Insurance Commissioners, please go to http://naic.org/

If you have any questions relating to the Fund's exposure to AIG or any other matter, please contact Stephen Knott, Director on +61 7 5557 4700.