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.
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.
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Press Information GWG Holdings, Inc. Minneapolis, Minnesota www.gwglife.com Media contacts: Rose Reifsnyder Sr. VP, Marketing GWG Holdings, Inc. (612) 840-7204 email@example.com Betsy Taube G&S Business Communications (919) 870-5718, x3221 firstname.lastname@example.org
Source:GWG Holdings, Inc.