Life
Settlement Assets PLC: Final Results
30 April 2024
Life Settlement Assets
PLC
(the "Company" or
"LSA")
Results for the year ended 31
December 2023
LSA, a closed-ended investment trust
company which invests in, and manages, portfolios of whole
interests in life settlement policies issued by life insurance
companies operating predominantly in the United States, is pleased
to announce its results for the year ended 31 December 2023, and
the publication of its 2023 Annual Report.
The highlights of the year were as
follows:
Net Asset
Value
· USD
111.2 million, representing USD 2.23 per share.
Maturities
· Maturities totalling USD 34.1 million were declared - of
these, USD 25.6 million were non-HIV policies, and USD 8.5 million
were HIV policies.
Mutual Benefits Keep Policy
Trust ("MBC") Action
· Final
actions from the successful conclusion of the MBC litigation now
being implemented, with the Company experiencing mitigation of
operational risk, greater cost effectiveness of operations, and a
reduced need to retain cash.
Costs
· Decrease in total ongoing charges ratio from 7.1% to
5.6% of NAV in 2023.
· Ongoing charges ratio excluding policy servicing fees
and legal costs of 3.1% of NAV.
· Ongoing focus on management of costs.
Dividends
· During the year LSA announced on 2 February 2023 the
declaration of a special dividend of 6.0209 cents per share
totalling approximately USD 3.0 million, which was paid to
Shareholders on 24 February 2023.
· Since the year end, LSA announced on 15 February 2024 the
declaration of a further special dividend of 6.0209 cents per
share, totalling approximately USD 3.0 million, which was paid to
Shareholders on 15 March 2024.
Post Balance Sheet Event
As noted in the 2023 Annual Report,
since the year end, the Board has been informed that the Company
should receive additional proceeds from the MBC Action as a result
of overpayments of premiums on fractional policies made on the
instruction of the MBC Trust. Whilst the amount of the proceeds is
still in the process of being quantified it may be up to USD 4
million which, once verified, should result in a further increase
to NAV during 2024. Due to the lack of certainty surrounding the
amount involved, this has not been accounted for in these Financial
Statements. In the circumstances, the Directors consider this
accounting treatment to be appropriate, but it gives rise to a
potential understatement of net assets, which has caused the
Auditors to qualify their opinion on this specific issue. A
further announcement confirming the final details relating to these
additional proceeds will be made when appropriate.
Michael Baines, Chairman, commented:
"The outlook
for the life settlement industry remains positive, with increasing
investor interest in the sector, and a sustained demand for
liquidity among policy holders. The ongoing uncertainty in
current global financial markets is expected to promote demand from
investors wishing to have exposure to investment risk which is
minimally correlated to equity returns.
We have been encouraged by the
results across the portfolio, including in particular the HIV
policy segment which now comprises the majority of the Company's
asset base. Looking ahead, supported by the
continuing analysis of the data and mortality assumptions applied
in our models and confirmed by the independent opinion of Lewis
& Ellis, the Board has confidence in the
accuracy of its assessment of NAV. Alongside this,
our core focus remains on controlling costs
against the background of the uncertain and inflationary
environment, while also continuing to review the means to provide
satisfactory returns to shareholders, including through dividends
and share repurchases."
The Directors are pleased to attach
the Company's annual report and financial statements for the year
ended 31 December 2023.
Click on the following link, or
paste it into your web browser, to view the associated PDF
document:
http://www.rns-pdf.londonstockexchange.com/rns/6660M_1-2024-4-30.pdf
RNS
PLEASE PROVIDE LINK TO PDF HERE
The annual report and financial
statements for the year ended 31 December 2023 may also be
downloaded from the Company's website at
https://www.lsaplc.com/investor-relations/annual-reports/
For
further information contact:
Acheron Capital Limited (Investment
Manager)
Jean-Michel Paul
020 7258 5990
Shore Capital (Financial Adviser and
Broker)
Anita Ghanekar/Gillian
Martin
020 7408 4090
ISCA Administration Services
Limited
Company Secretary
Tel: 01392 487056
DISCLAIMER
Neither the contents of the
Company's website nor the contents of any website accessible from
hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
NATIONAL STORAGE MECHANISM
A copy of the 2023 Annual Report and
Accounts will be submitted shortly to the National Storage
Mechanism ("NSM") and will be available for inspection at the NSM,
which is situated at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Notes to Editors
Life Settlement Assets PLC is a
closed-ended investment trust company which invests in, and
manages, portfolios of whole and fractional interests in life
settlement policies issued by life insurance companies operating
predominantly in the United States. The Company seeks to generate
long-term returns for investors by investing in the life settlement
market, through each of the separate Share Classes. The Company
aims to manage its investment in portfolios of life settlement
products so that the realised value of the policy maturities
exceeds the aggregate cost of acquiring the policies, ongoing
premiums, management fees and other operational costs.