TIDMLSAA
RNS Number : 7833X
Life Settlement Assets PLC
28 April 2023
Life Settlement Assets PLC
(the "Company" or "LSA")
Results for the year ended 31 December 2022
LSA, 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, is pleased to announce its
results for the year ended 31 December 2022, and the publication of
its 2022 Annual Report.
The highlights of the year were as follows:
Finalisation of MBC litigation
-- Formal acceptance on 2 March 2023 by the US Court of the
southern District of Florida, Miami Division, of the sale of life
policies portfolio to Acheron Portfolio Trust ("APT"), on behalf of
the Company.
-- Mitigation of operational risk with fractional interests in
policies now able to be consolidated into policies 100% owned by
APT.
-- More cost-effective operations in the future with a
significant reduction in future legal costs.
-- Reduced need to retain cash following the life policies
portfolio purchase, together with a resumption of dividends payable
by the Company.
Net Asset Value
-- USD 109.9 million, representing an uplift of USD 0.6 million during the year.
Maturities
-- Maturities totalling USD 27.2 million were declared - of
these, USD 20.9 million were non-HIV policies, and USD 6.3 million
were HIV policies.
Costs
-- Decrease in total ongoing charges ratio from 7.6% to 7.1% of NAV in 2022.
-- Decrease in ongoing charges ratio excluding policy servicing
fees and legal costs from 3.6% to 3.0% of NAV.
-- The Company has agreed a reduction of the Investment Manager
performance fee from 20% to 10% of the total distributions made by
the Company over the agreed hurdle rate.
Dividend
-- Since the year end, following the initial indication of the
ruling of the US Court, 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.
Michael Baines, Chairman, commented:
"The successful conclusion of your Company's long running
litigation against MBC marks a significant development in our
strategy of unlocking value for Shareholders. It removes an
important area of risk, builds value, and unlocks alternatives for
the deployment of funds arising on the maturity of policies. It
also means that the Board's attention can focus solely on the
broader risk issues in the portfolio, including that of HIV
mortality.
The Board is acutely aware of the impact that last year's cash
retention policy has had on the level of discount at which LSA's
shares trade. Therefore, in addition to the announcement of a
special dividend and a return to the previous approach to dividend
payments generally, the Board is actively considering further
options to reduce this discount, which will be communicated to
Shareholders at the appropriate time.
Given that the non-HIV portfolio is now expected to mature
faster than the HIV portfolio, we will continue to closely monitor
research on mortality in general to guide future decisions. The
past track record of assessing risk across the portfolio gives the
Board confidence that outcomes should be achieved which will
continue to underpin the value proposition for Shareholders."
The Directors are pleased to attach the Company's annual report
and financial statements for the year ended 31 December 2022.
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/7833X_1-2023-4-27.pdf
The annual report and financial statements for the year ended 31
December 2022 may also be downloaded from the Company's website
at
https://www.lsaplc.com/investor-relations/company-reports/published-reports/
For further information contact:
Acheron Capital Limited (Investment Manager)
Jean-Michel Paul
020 7258 5990
Shore Capital (Financial Adviser and Broker)
Robert Finlay
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 2022 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.
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END
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