REG - Life Settlement - Final Results

Life Settlement AssetsAnnouncement

Tue 07:00

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RNS Number : 5190G  Life Settlement Assets PLC  29 April 2025

Life Settlement Assets PLC: Final Results

28 April 2025

 

Life Settlement Assets PLC

(the "Company" or "LSA")

 

Results for the year ended 31 December 2024

 

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 2024, and the
publication of its 2024 Annual Report.

 

The highlights of the year were as follows:

 

Net Asset Value

·USD 101.0 million, representing USD 2.23 per share.

 

Maturities

·Maturities totalling USD 23.1 million were declared of which USD 14.1
million were non-HIV policies, and USD 9.0 million were HIV policies.

 

Mutual Benefits Keep Policy Trust ("MBC") Action

·Steady progress has continued with the finalisation of administrative
arrangements relating to the MBC action. Funds amounting to USD 9.7 million
were received by the Company on 28 August 2024, comprising the first tranche
of the MBC sale proceeds of USD 5.7 million and the return of overpaid
premiums of USD 4.0 million. The second tranche of the MBC sale proceeds of
USD 6.0 million is expected to be received by the Company during 2025.

 

Costs

·Decrease in total ongoing charges ratio from 5.6% to 5.0% of average net
assets in 2024.

·Ongoing charges ratio excluding policy servicing fees and legal costs of
decreased from 3.1% to 2.7% of average net assets.

·Ongoing focus on management of costs.

 

Dividends

·  During the year, LSA announced 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.

 

Share Buybacks

·  The Company bought back and cancelled 4,423,841 shares in the year to 31
December 2024, representing 8.9% of the issued share capital at 31 December
2023 at a total cost of USD 7.8 million.

 

Post Balance Sheet Events

On 28 March 2025 the Company announced that since the year end further
examination of the portfolio acquired from the MBC Trustee had revealed that
the MBC Trustee had previously not exercised an extension to a particular
policy which extended the maturity from 100 to 120 years and that this was
likely to have a detrimental impact on the NAV of 3-4%.

 

Full details are included in the Chairman's Statement and the Investment
Manager's Report.

 

This has been considered as an adjusting post balance sheet event and the
effect has been recognised in the financial statements.

 

Since the year end, the Company has bought back 622,231 Ordinary A Shares at a
total cost of USD 1.1 million representing 1.4% of the shares in issue at the
year end. At the date of the signing of this report the number of shares in
issue is 44,780,712.

 

Michael Baines, Chairman, commented:

 

"The Board believes that its focus on simplifying your Company's portfolio
structure and cost base over previous years now offers a clearer investment
proposition to Shareholders and future investors. This also allows the Board
to maintain its attention on the delivery of the three core components of the
Company's strategy - comprising monitoring and refining the accurate
measurement and forecasting of NAV, control of costs, and the delivery of
returns to Shareholders.

 

Recognising the migration of the portfolio from an emphasis on non-HIV
policies to an entirely HIV based portfolio, the Board is aware this forecast
maturity profile is likely to result in a reduced level of cash inflows from
maturities in this portfolio over the period 2028 -2032. In order to mitigate
the impact of this shortfall the Board is exploring a number of other
opportunities to purchase alternative distressed assets with maturity profiles
matched to this time period.

 

Alongside this, the Board will continue to explore opportunities to provide
satisfactory returns to Shareholders 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 2024.

 

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/5190G_1-2025-4-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5190G_1-2025-4-28.pdf)

 

The annual report and financial statements for the year ended 31 December 2024
may also be downloaded from the Company's website at
https://www.lsaplc.com/investor-relations/annual-reports/
(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)

Gillian Martin / Anita Ghanekar

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 2024 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
(https://url.avanan.click/v2/___https:/data.fca.org.uk/___.YXAxZTpzaG9yZWNhcDphOm86ZDhkZjk5Nzk5ZmExMzJjODc4ZTBhMDkzMDQzNzU2MGE6Njo4NDMwOjdlMDhhYTQ2MWU1ZjRkN2RjMGMxYzE0YzI2YmM5ZDMwZTM0OGM5N2Y5MWVhNTljMzg0ZmIyMjE4ZDFkZWQ3MmI6cDpG#/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. 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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