In its first earnings report since its $169M IPO last month, Imperial Holdings announced a 2010 loss which was double that of 2009, amid declining revenue.
Boca Raton-based Imperial Holdings has two primary businesses (1) loans to policyholders to cover life insurance payments and (2)acquiring structured settlement payment rights* via structured settlement factoring transactions.
According to a report in South Florida Business Journal, Imperial Holdings lost $15.7 million on revenue of $76.9 million in 2010. The year before, it lost $8.6 million on revenue of $96.6 million. The company got fewer fees from referring life insurance agencies and lower interest income on its loans.
Imperial’s pre IPO SEC disclosures describe a company at the upper end of structured settlement factoring discount rates which is theoretically great for investors but a big suck pop for selling structured settlement annuitants.
Imperial Holdings Chairman and CEO Antony Mitchell said in a press release “While historically our cost of financing has impacted our bottom line, the IPO has afforded us the opportunity to make significant strides in the way we operate our business. We are now able to deploy capital to our core premium finance and structured settlement businesses quickly and effectively at a significantly lower cost.”
* the South Florida Business Journal stated that Imperial ‘s business included “handling structured settlements” as opposed to acquiring structured settlement payment rights as described above. The South Florida Business journalistic “brain fart” on structured settlements continues.
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