by John Darer CLU ChFC CSSC RSP
Imperial Holdings has issued a revised registration statement, S1-A, with the Securities and Exchange Commission ("SEC"), in conjunction with its Initial Public Offering (IPO). The statement was published on October 1, 2010
It includes the following:
"On September 30, 2010, we entered into a wind down agreement with Slate (A unit of AIG whereby
as of December 31, 2010, we will cease selling structured settlements to Slate. Under the wind down agreement, which amends our existing arrangement with Slate, we will continue submitting structured settlements to Slate through November 15, 2010 for purchase by December 31, 2010". (see Imperial Holdings, Inc. S1-A page F-37 in Notes to Consolidated and Combined Unaudited Financial Statements)
As an aside, this author has canvassed representatives of other current structured settlement annuity issuers to disclose whether or not their firm makes investment in structured settlement securitizations and has received no disclosure at the time of this writing.
Both sides of house need to be aware of what each is doing to avoid conflicts and misperceptions
In my opinion It is important to assure that insurers who are writing structured settlements are not then purchasing secondary market deals or securitizations from "cash now pushers" who have charged excessive discount rates to tort victims whose circumstances have resulted in the need to liquidate some of their structured settlements down the road. In the opinion of this author the market place should be developing a solution which affords a fair price to sellers and affords reasonable opportunities to buyers as an asset class, including tort victims.
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