A publicly traded life settlement firm says an article in a business newspaper has given a misleading description of its operations.
The Wall Street Journal has printed an article that quotes sources who say Life Partners Holdings Inc., Waco, Texas (Nasdaq GS:LPHI), may have underestimated the life expectancies of the insureds who used Life Partners to sell life insurance policies to investors.
“As trade publications have reported, this phenomenon has been experienced throughout the life settlement industry and is not exclusive to [Life Partners],” Life Partners Chairman Brian Pardo says in a public letter addressed to investors.
Life Partners “calculates sensitivity of return utilizing [life expectancy (LE) ] to set a reasonable premium escrow amount, and does not rely exclusively upon LE as the primary factor for profitability,” the firm says.