Mixed signals from new US life settlements index

Now in its fifth month, an index of
activity and prospects in the US life settlements market is
providing mixed indications of whether the market has begun a
sustained recovery following its setback in 2009.

Produced by life settlements information
specialist Amrita Financial the index produced a positive picture
in April, rising 92.8 points (28.6%), from 324.6 points in March to
417.4 point.

However, the rise in April followed a 130 point
(28.6%) fall in the index between February and March and a 73 point
(14%) fall between January and February.

Overall the index in April was 16.5% down from
its base of 500 points set at the time of its launch in December
2009.

According to Amrita, the index is derived from
surveys of licensed life settlement providers operating in the
US.

Opinions on current activities and life
settlement market conditions make up 85.7% of the index and
expectations of future buying demand comprise the remaining
14.3%.

Following the index’s rise in April, Amrita
commented that the upswing resulted from increased activity in the
market and “renewed bullish expectations”.

Specifically, providers reported a month over
month increase in the number of cases in which they made offers and
a “spike” in the amount of policies that were actually
purchased.

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