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Company ranks fourth in 2015 ranking, with 2016 looking even brighter
MINNEAPOLIS, June 16, 2016 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (GWG) (Nasdaq:GWGH), a specialty finance company and a leader in the life insurance secondary market, ranked as one of the top purchasers of life insurance policies in the secondary market for life insurance in 2015. According to The Deal’s seventh annual survey of the life settlement market, GWG ranked fourth in total number of policies purchased and third in total face amount of policy benefits purchased.
The number of policies purchased by GWG in 2015 surged nearly 200 percent over the 2014 total. GWG bought 105 policies with a total face value of benefits of more than $180 million in 2015. By comparison, in 2014 the company purchased 36 policies with $55.5 million in face value of benefits, ranking 10th in that year’s market survey.
Successful capital raise and growing advisor network keys to purchasing power
For 2016, GWG is on pace to significantly surpass last year’s results, having already purchased 75 policies with $102 million in face value of benefits in the first quarter. GWG President Michael Freedman said the increasing amount of capital raised through the sale of GWG’s alternative investment products has been the driving force behind the company’s ability to purchase significantly more policies. The company previously reported having raised approximately $75 million over the past two fiscal quarters.
Another major factor contributing to GWG’s growth is the company’s developing direct policy origination program.
“We work with our growing network of financial advisors and independent insurance agents who help insurance policy owners access the value of their life insurance policies through GWG,” said Freedman. “Financial professionals are quickly becoming aware of and comfortable with the well-regulated secondary market for life insurance.”
GWG’s network of financial advisors who sell its investment products has more than doubled to reach more than 3,500 professionals. Approximately 64 percent of them have been authorized or approved to source insurance policies for GWG.
Market surged nearly 33 percent in 2015, more growth expected in 2016
GWG’s success reflects overall growth in the secondary market for life insurance. According to The Deal’s survey, there were a total of 1,123 policy sales in 2015 – an increase of nearly 33 percent over 2014. The total face value of policy benefits remained the same at $1.65 billion in both years, pointing to an upward trend in the number of smaller policy transactions. The Deal reported that several other life settlement providers are also on pace to exceed 2015 totals this year.
See The Deal’s League Table of 2015 Top 15 Settlement Buyers and read the full survey findings in The Life Settlements 2015 League Tables report.
About The Deal
The Deal is a media and relationship capital company providing over 100,000 users with business opportunities sourced from proprietary deal news and a relationship discovery tool. Law firms, investment banks, private equity, and hedge funds use The Deal's insight and analysis about potential and announced transactions to find their next deal, and BoardEx's service and database for building relationships. The Deal has offices in New York, London, Washington, D.C., Petaluma, CA and Chennai, India. For more information, visit www.thedeal.com.
About GWG Holdings, Inc.
GWG Holdings, Inc. (GWG) (Nasdaq:GWGH) is a specialty finance company and a leader in the life insurance secondary market. GWG is dedicated to creating a vibrant secondary life insurance market for the economic benefit of seniors seeking post-retirement financial solutions, investors seeking yield derived from non-correlated assets, financial advisors seeking value-added products and services for their clients, and shareholders seeking to benefit from the growth of this marketplace. As of March 31, 2016, GWG’s growing portfolio consisted of over $1.0 billion in face value of benefits. Since 2006, GWG has purchased nearly $2 billion in life insurance policy benefits and paid seniors over $335 million for their policies.
For more information about GWG Holdings, email info@gwglife.com or visit www.gwglife.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "would," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about our estimates regarding future revenue and financial performance. We may not actually achieve the expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements we make. More information about potential factors that could affect our business and financial results is contained in our filings with the Securities and Exchange Commission. Additional information will also be set forth in our future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.
Press Information
GWG Holdings, Inc.Minneapolis, Minnesotawww.gwglife.com
Media contacts:
Rose Reifsnyder
Sr. VP, Marketing
GWG Holdings, Inc.
(612) 840-7204
rreifsnyder@gwglife.com
Betsy TaubeG&S Business Communications
(919) 870-5718, x3221
btaube@gscommunications.com
GWG Holdings, Inc.
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