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11 February 2013

SL welcomes 21st Services Life Expectancy (LE) Extension

The announcement by 21st that it is extending its average LEs has been welcomed by specialist asset manager SL Investment Management. SL's Investment Director and life settlement specialist Patrick McAdams noted:

"This shift was well overdue as data has indicated for some time that 21st LEs were consistently shorter than the other major medical underwriters that produce LEs for the life settlement market.  Internally we have always taken the approach that relying on a single LE is inappropriate and as such we insist on multiple life expectancies for each policy prior to acquisition. Because of our experienced in-house actuarial team and attention to in-depth due diligence we have regularly examined the mechanics and methods behind each LE provider we utilise and this enables us to better understand their strengths and weaknesses. Ultimately this means applying our knowledge and expertise in a way that risk adjusts for identified weaknesses and weights towards strengths."

Fasano Associates and AVS have both publically noted that they do not intend to extend their life estimates as a result of the 21st announcement.