Life Settlement Index Shows Continued Industry Slide

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Tue Apr 6, 2010 10:00am EDT 

  OCEANSIDE, CA, Apr 06 (MARKET WIRE) -- 
The Amrita Life Settlement Index posted its March 2010 data pointing to a
continued slide in demand for insurance policies on the secondary market.
The index showed a steep drop of 28.6%, from 455 points to 325 points.
The results, which were released at 10:00AM EDT April 6, showed the index
dropped 130 points from the previous month on increasingly conservative
buying activities and sentiments from life settlement providers. 

    Driving the index's decline were a myriad of bearish market factors. The
number of insurance policies received by life settlement providers for
purchase consideration increased in March. Conversely the amount of
policies for which life settlement providers chose to tender offers
decreased. This growing imbalance of supply and demand exemplifies the
persistent illiquidity in the current life settlement marketplace. 

    The expected Internal Rate of Return or "IRR" sought by institutional
life settlement buyers is reflected in their purchase offers. As the
targeted IRRs and returns on investment go up, the life settlement
purchase prices go down. For the first time since the Amrita Life
Settlement Index's inception, the expected IRRs are trending upward. This
increased purchasing power by buyers suggests decreased competition for
policy acquisition and slacking demand overall for life settlements. Life
settlement provider buying parameters remain conservative but are
unchanged across all survey respondents. 

    For additional information, visit
http://www.amritafinancial.com/life-settlement-index.

    About Amrita Financial:

    Amrita Financial is a web based life settlement service that provides
consumers and financial advisors with a direct conduit to the financial
institutions that buy life insurance policies on the secondary market.
Amrita Financial was established in 2008 to offer an alternative to using
a traditional life settlement broker and deliver better value to those
that want to sell their life insurance policies in a life settlement. It
offers turn key life settlement taxation and life settlement appraisal
tools in addition to an electronic transactional platform. 

    

Contact: 

Christian Evulich
Amrita Financial 
(888) 539-8885 x101
Email Contact 

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