MARKET OUTLOOK OF THE LIFE SETTLEMENT INDUSTRY

According to On Wall Street magazine (September 2004), the market for senior settlement securitizations was just $50 million in 1990 with the current market estimated in excess of $134 billion. It is reasonable to conclude that the outstanding face value of polices on insureds over age 65 and with a life expectancy of two to 12 years is in the region of several hundred billion dollars. Considering the subset of those policies where there is a willing seller, Life Settlement Solutions Inc., estimates the market at $50￿$100 billion. The growth potential is evident and will be fueled by the aging population in the United States.

Life Settlement Solutions estimates that with the appropriate access to capital, it can purchase approximately $3-5 billion of policies over the next five years.

According to Asset Finance International (September 2000), Goldman Sachs, Lehman Brothers, Bear Stearns, Credit Suisse First Boston, DLJ, First Union, JP Morgan, GE Capital and Paine Webber offer advice to their private clients regarding senior life settlement transaction. It is only a matter of time before this asset class becomes more familiar to the investor community, and the financial planning alternative becomes more familiar to the policyholders.

According to a June 2005 Bernstein Research report, the life settlement market has grown from zero in the mid—1990s to around $13 billion today and will continue to grow to $160 billion over the next several years.