The only publicly traded U.S. life settlement company says a new accounting rule has helped its income statement.

Life Partners Holdings Inc., Waco, Texas, which has a fiscal year that starts March 1, uses cash from financial institutions to buy life insurance policies from the insureds.

The company is reporting $470,992 in net income for the quarter that ended May 31 on $6.2 million in revenue, up from $469,105 in net income on $4.9 million in revenue for the comparable quarter in 2005.

The Financial Accounting Standards Board, Norwalk, Conn., recently ruled that companies that buy life insurance policies through the resale market can use the policy purchase price, rather than the much lower cash surrender value, when accounting for the value of the policies.

The accounting change helped Life Partners increase the total amount of policy face value purchased 59%, to $29 million, the company says.