Lapse_Grace Analysis

Prepared for H. Thomas Moran, Chapter 11 Trustee of Life Partners Holdings, Inc.
LPHI, LPI, LPI FS
Lapse/Grace Analysis
As of April 28, 2015
Analysis below uses data gathered from the records and projections of Life Partners Inc., which has not been confirmed by any third party
Projects are currently underway to verify LPI data and calculate minimum premiums required (optimize).
Chapter 11 Trustee will need full cooperation from Escrow Agents PES and ATLES to reconcile escrow accounts.
Next 75‐90 Days
$ 3,760,179
849
Next 12 months
$ 18,295,231
1,824
Policies in ATLES System
Next 3 months
Next 12 months
Premiums projected by LPI
Less: Cash surrender value available to cover policy costs
Premiums after use of Cash Surrender Value
Less: Escrow funds available to cover policy costs
Funds needed to keep policies in force
22,854,175
17,390,768 (a)
5,463,407
2,694,268 (b)
2,769,138
85,500,084
66,427,487 (a)
19,072,598
7,483,544 (b)
11,589,054
Number of Policies facing near‐term lapse/grace if not funded
Death Benefit of Policies facing near‐term lapse/grace if not funded
52
142,487,896
137
445,577,728
Beginning cash surrender value in policies
Ending cash surrender value in policies
135,132,167
117,741,399
135,132,167
68,704,680
Beginning escrow balances on all policies
Ending escrow balances on all policies
52,814,337
50,120,069
52,814,337
45,330,793
Next 75 Days
Next 12 months
Current premium deficit
Policies that will lapse/receive grace notice if deficit is not funded
Policies in PES System (data as of 4/21/15)
Premiums projected by LPI
Less: Cash surrender value available to cover policy costs
Premium after use of Cash Surrender Value
Less: Escrow funds available to cover policy costs
Funds needed to keep policies in force
5,944,130
2,987,786 (a) (c) 2,956,344
1,965,303
991,041
23,212,040
14,540,560 (a)
8,671,480
1,965,303 (d)
6,706,177
Number of Policies facing near‐term lapse/grace if not funded
Death Benefit of Policies facing near‐term lapse/grace if not funded
797
NA (e) 1,687
349,219,695
Beginning cash surrender value in policies
Ending cash surrender value in policies
51,922,704
48,934,918
51,922,704
37,382,144
Beginning escrow balances on all policies
Ending escrow balances on all policies
5,164,675 (f) 3,199,372
5,164,675 (f) 3,199,372
ALL Policies
Next 75‐90 Days
Next 12 months
Premiums projected by LPI
Less: Cash surrender value available to cover policy costs
Premium after use of Cash Surrender Value
Less: Escrow funds available to cover policy costs
Funds needed to keep policies in force
28,798,305
20,378,554
8,419,750
4,659,571
3,760,179
108,712,124
80,968,047
27,744,078
9,448,847
18,295,231
Number of Policies facing near‐term lapse/grace if not funded
Death Benefit of Policies facing near‐term lapse/grace if not funded
849
142,487,896
1,824
794,797,423
Beginning cash surrender value in policies
Ending cash surrender value in policies
187,054,871
166,676,317
187,054,871
106,086,825
Beginning escrow balances on all policies
Ending escrow balances on all policies
57,979,012
53,319,441
57,979,012
48,530,165
(a) Cash Surrender Value held under PES and/or ATLES policies.
(b) Escrow balance held at PES and/or ATLES, excluding death benefits
(c) Estimated based on full year figure.
(d) Only the 3 month figure for escrow balances can be tied directly to any specific policies. Assume same figure for 12 months until further detail is available.
(e) Difficulty in linking face value to policies in PES system due to differences in PES accounting numbering versus numbering at LPI
(f) Per LPI report dated 4/24/15, see note (d) as well.