Pre-Conference Workshops: Wednesday, July 14, 2010

1.00pm – 3.30pmWorkshop A: “What’s it Really Worth?” Performing Accurate Valuations on Life Settlement Portfolios

Ever since the LE providers changed their estimates back in 2008, causing many investors to lose money on their portfolios, there has been widespread scrutiny and distrust of life settlement portfolio values. In this extended session, your workshop leader will take you on a deep dive into the many factors that influence life settlement portfolio values, ensuring you walk away with the tools needed to perform accurate portfolio valuations and ultimately making you a savvier investor.

What you will learn:

• Identifying the factors that determine the value of a given life settlement portfolio:
• The face value of the policies within the portfolio
• The life expectancies of the insureds within the portfolio, including data on the choice of underwriter and the date of the underwriting assessment
• The costs associated with valuation and portfolio maintenance
• Understanding the differences between probabilistic and deterministic approaches to portfolio pricing
• Examining the major sources of uncertainty in portfolio values

How you will benefit:

• Understand the importance of scrutinizing the assumptions that go into life settlement portfolio prices
• Become a savvier investor in life settlement portfolios
• Improve your IRR

Thomas Laumont Board Member BVZL e.V., Germany

Christian Seidl Executive Vice President Life Bond Management GmbH

Workshops B & C will run concurrently

1.00pm – 3.30pmWorkshop B: Making Better Use of Catastrophe Models

Catastrophe models are a critical part of the puzzle for investors in non-life ILS, but there are few outside the modeling agencies themselves who understand exactly how the models are designed. In this workshop, take a look “under the hood” of some of the world’s most important and popular catastrophe models, and learn how to make better use of models in your investment calculations.

What you will learn:

• Understand how catastrophe models combine actuarial science, engineering, seismology, meteorology and expert opinion
• Examine the interrelationship between hazard, inventory and vulnerability values within cat models
• Gain a better sense of the ways catastrophe models are used in the structuring – and choice – of cat bond triggers

How you will benefit:

• Learn what the implications are of discrepancies between different catastrophe models
• Become a more sophisticated cat bond investor by better understanding the relationship between modeled values and cat bond pricing

Bill Keogh
Senior Vice President, Strategic Initiatives
EQECAT

4.00pm – 6.30pm Workshop C: Winning the War of Words: How the Life Settlements Industry Can Solve its Messaging Problem

The life settlements industry is getting much more serious about taking back the publicity battle that has been raging since the publication of that now infamous New York Times article some six months ago. A recent trade mission to Europe exemplified this new direction, showing the importance now placed on open, clear communication with investors and the insistence on high industry standards. But it is clear that much still needs to be done to improve industry messaging and reclaim the initiative from those who seek to disparage and discredit the industry. The Insurance Studies Institute has been active in furthering these initiatives, and in this key workshop Christopher Kampa – Director of Research - will explore some of most important areas for industry participants in the upcoming publicity struggle.

What you will learn:

• Examining the way life settlements have been portrayed in the media over the past 12 months
• Identifying the critical components of a more successful messaging strategy: honesty, transparency, statistically significant data
• How to position the industry’s good stories in a way to rebalance the perception of the asset class in the media

How you will benefit:

• Get the facts needed to engage more effectively with media outlets and reporters
• Determine the most effective strategies needed to deal with sleaze, fraud, and a few “bad apples”
• Winning the PR battle: How the life settlements industry can reclaim the initiative in the media

Christopher Kampa
Director of Research
Insurance Studies Institute (ISI)

4.00pm – 6.30pm Workshop D: Constructing Portfolios of ILWs and Insurance-Linked Securities: Benchmarking Portfolio Performance

For investors new to catastrophe risks, there are bewildering array of different risks, regions, sourcing channels and maturity levels available for portfolio diversification. But what does the "optimal" allocation strategy look like, and how should investors align their risk/reward tolerance with the many options that are available? Attending this 2-hour long workshop will provide you with a detailed knowledge of the most effective ILS and ILW portfolio construction techniques, making you a better investor in this exciting asset class. Note, this session will be conducted as a seminar rather than a workshop - "what to do", rather than "how to do". The seminar will focus on the issues that should be included in a "best practice" check list for fund managers, together with a reprise of current analytical developments.

What you will learn:

• Examining the traditional ways of constructing an ILS / ILW portfolio
• A closer look at silos and DFA analyses
• Optimizing across "re-modeled" scenario sets
• Objectives and risk constraints
• Identifying risks other than catastrophe risks to consider

How you will benefit:

• Understand how to balance diversity levels with your required risk-reward tolerance
• Achieve visibility over the risk metrics for each region and peril combination
• Walk away with a best practice check-list for ILS and ILW portfolio management

Morton Lane
President
Lane Financial LLC