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Life Settlement Portfolio Management Services
Value Life Corporation and Chapman, Hext & Co. have formed a
joint venture to provide comprehensive valuation and portfolio
management services to the growing number of Investment Banks, Hedge
Funds and other investors within the life settlement industry, premium
finance sector, and beneficial interest transactions. Our aim is to
facilitate the entry of new investors to the life settlement sector, to
facilitate their eventual disposition of policies, and to provide a full
menu of management services to investors in the interim. Brief
biographies of the principals in the joint venture follow.
Larry Warnock, FSA, MAAA
Larry founded Value Life Corporation (VLC) in 2004 and serves as
President. Larry is a graduate of Georgia State University with a major
in actuarial science, and has over thirty years experience with
Tillinghast and Milliman, leading national actuarial firms, and KPMG, a
big four accounting firm. He is responsible for development of
actuarial systems and processes, supervision and review of work products
and services delivered by VLC’s actuarial resource network. Larry
is a fellow of the Society of Actuaries and a Member of the American
Academy of Actuaries. VLC is a member of the Life Insurance Settlement
Association (LISA) and works exclusively in life insurance settlements
and related areas.
Greg W. Hext, CPA
Greg is the CEO of Chapman, Hext & Co., P.C. (CH & Co) and
its affiliated companies. Greg graduated from Lamar University
with a BBA in accounting and a minor in economics and is a member of the
American Institute of Certified Public Accountants, Texas Society of
Certified Public Accountants, and various civic and religious
organizations. In addition, he sits on two corporate boards.
CH & Co is a regional accounting firm
with a full suite of accounting, tax, and financial services, along with
investment banking, wealth management, and private equity. CH & Co
provides services throughout the United States, Europe, China, and
Mexico, including company start-up, company sale, and bank and equity
financing. CH & Co is certified by the Public Company
Accounting Oversight Board (PCAOB) and American Institute of Certified
Public Accountants (AICPA). For the last eighteen years, CH &
Co has provided back office servicing to real estate, private equity,
and other firms and more recently has advised clients on life settlement
investment.
Thomas M. Kann
Tom serves as Director of Life Settlement Services for CH &
Co. His long Wall Street career includes major investment firms
Bache & Co., Loeb Rhoades, United California Bank, Smith Barney,
Société Generale, Morgan Stanley and UBS Securities. Tom was a Director
of AmeriFirst, Inc. which through it’s subsidiary companies operated as a
Provider, Servicer and Fund Manager in Life Settlements. Tom was
instrumental in establishing AmeriFirst Funding Group as a
Provider in 38 states, setting up a national broker network, and
internationally marketing AmeriFirst Fund 1, LLC, a registered S-1
filing. In 2004 Tom created Corinthians, LLC, a consulting company
specializing in the Secondary Market for Life Assets. Tom has over 38
years experience in the financial markets and is a specialist in Life
Asset Financing. He holds FINRA licenses Series 7, 22, 24 and 63 and is a
licensed agent in Life, Health, and Variable Annuities Insurance.
Our Services
CH & Co and VLC provide you with superior servicing by using
state-of-the-art tools and software that integrates servicing and
on-going portfolio valuation and media designed to market a specific
portfolio or case at any given time. Our family staff of over 60
professionals are driven by the accuracy and quality of their work and
ethics, which emanates from a disciplined accounting, actuarial and
auditing platform. We believe these components coupled with our desire
for excellence and customer service and our willingness to work with you
will differentiate us from other servicers. After all, wouldn’t you
rather be a big fish in a small pond, than a small fish in a big pond?
Our firm provides the following portfolio management services:
Account Set Up and Acceptance
- Review and execution of program documents.
- Establish administrative and operational procedures, prescribed accounts and all necessary records.
- Perform work required to begin relationship.
- Review and execute the Verification Agreement.
Pre-Purchase Services (Each Policy Proposed)
- Review each case proposed.
- Client access to Instant On-Line Valuation™.
- Provide independent policy appraisal and ingoing IRR.
Closing Services (Each Policy Purchased)
- Verify transaction details against prescribed checklist.
- Verification of Change of Ownership, if applicable.
- Verification of Change of Beneficiary, if applicable.
- Verification of Beneficial Interest, if applicable.
- Take Ownership as Securities Intermediary, if applicable.
Post-Purchase Services
- Monitor correspondence from insurer including annual statements and premium notices.
- Review premium calculations annually to optimize premiums.
- Pay premiums directly to the insurer.
- Invest funds that you provide according to your instructions.
- Collect investment income, withdraw premium payments, and deposit maturity collections.
- Continuously track maturities.
- Provide periodic reports to your specifications.
Post-Purchase Data Update Services
- Obtain updated insurer illustrations.
- Obtain updated verification of coverage (“VOC”) statements.
- Obtain updated medical records as required.
- Obtain updated life expectancy reports as required.
Net Asset Value Calculations
- Develop NAV Calculations at desired frequency, quarterly, monthly, or semi-monthly.
- Utilize FASB-compliant calculations of fair value.
- Reflect data updates as required.
- Recalculate future premiums as of valuation date based on current status of policy, including prior premium payment history.
- Provide audit report.
Policy Status Reports
- Status reports are continuously updated and available upon request.
- Status reports show the premium payment history, forecast
premiums for the next year, any correspondence received, and the
policy’s most recent NAV calculation.
As professionals, we are here to serve you. We maintain the
highest standards of confidentiality. There are strict procedures
to ensure that your confidentiality and privacy is never compromised.
Portfolio Valuations Approach and Software
Valuing any investment is hard enough, but appraising the value of
life insurance policies as investments requires specialized knowledge
most investment professionals don’t possess. As an investor, you
need to answer the question “What’s it worth?” not only when you first
acquire a policy, but also for ongoing financial reporting and at the
time of disposition. We can assist you by providing the
focused expert knowledge to answer that question.
Our approach to portfolio valuations is efficient, accurate, and cost
effective. We use our proprietary software, Value Life Modeling
Software™, for portfolio valuations. Our system fully integrates
the functions of life settlement pricing, premium finance cost to carry
analysis, portfolio pricing, portfolio valuation, and Monte-Carlo
simulations to a single integrated platform.
Our approach looks at a portfolio as a portfolio, and we adapt the
file building techniques to utilize the data format that the client has
in the most efficient manner. This enables us to perform the
initial data set up in the most cost-efficient manner. We have the
capability to perform FASB-compliant portfolio valuations as frequently
as you need them, even daily.
Best of all, when we perform your portfolio servicing, all required
premium optimization calculations and net asset value calculations are
performed seamlessly as part of the overall service.
About Us
Value Life Corporation (VLC) is a boutique actuarial and advisory
firm in Atlanta, Georgia. We work exclusively in the Life
Settlement and Premium Finance segments of the Life Insurance
industry. Our name, Value Life, describes our core
competency: Life settlements is our one and only business.
VLC associates are experts in the pricing and valuation of senior life
insurance policies and portfolios of life settlements and premium
finance transactions.
VLC has developed a suite of proprietary analytical tools to analyze
and develop valuations—both for individual policies and portfolios.
These powerful tools enable us to deliver accurate results to clients
with extraordinary efficiency.
Both companies have been working in the Life Settlements industry and
had both determined that many investors were looking for a reliable
solution for managing their portfolios. VLC has provided portfolio
valuation, due diligence, and other services to the industry for a
number of years. CH & Co. has worked with a number of investors as
they have evaluated investments in the Life Settlements industry.
VLC and CH & Co. have both seen a dramatic growth in the need for
services to investors in the Life Settlement industry. The formation of
this joint venture brought the partnership of valuation and servicing
together with two firms with a long history of providing quality
services.
A Note About Statement of Auditing Standards No. 70
SAS 70 audits are performed by independent auditors and are generally
conducted on the internal controls of an organization (service
organization), that processes certain transactions that are part of
another organization’s (user organization) accounting and information
systems. Investment banks and others that hold life insurance
portfolios are performing significant services for their
investors. This means that an internal control audit (SAS 70
audit) on the holder might be required. One of the significant
advantages of using CH & Co and VLC for valuation and servicing of
your portfolio is our extensive experience in the compliance
world. CH&CO performs financial audits and internal control
audits regularly. We know exactly what your auditors want, from
corroboration of the transactions to documentation of your processes and
related controls. We will be happy to facilitate the process with
your auditors to make it easier and less time consuming for you.
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