Life Settlement Index Recap - Dec, 2010 Data

The results of the Amrita Life Settlement Index were released at 10AM EST on Tuesday January 4th. The Index rose slightly from 739.6 to 760.8. The 2.9% increase marked the 5th straight month of gains for the index which measures demand and sentiment on the secondary life insurance market.

Many were expecting demand to fall in December when compared with November's figures as institutional buyers, in both the United States and Europe, had abbreviated months due to the holidays. However, even with many operations closed during the last week of the year, a number of providers actually reported both increases in offers tendered and closings compared to November.

Forward looking sentiment was bullish overall as an overwhelming number of respondents foresaw an increase in demand to start the New Year. In addition, a significant number of respondents reported changes, both narrowing and widening, to their buying parameters. These adjustments could be due to the influence of new funding sources or reactions to changing market conditions. The results from 2010's final life settlement index reporting period suggest the life settlement market is poised for an active 2011.