GWGH - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Third Quarter 2017 GWG Holdings Inc. Earnings Conference Call. [Operator Instructions] And as a reminder, this conference is being recorded.

Now I would like to turn the call to Mr. Callahan. Dan ahead. go Please

Dan Callahan

be good XXXX Welcome inaugural earnings that we includes and Holdings webcast the third slides will information the quarter call illustrate today. afternoon, you, to everyone. GWG that discussing Thank and our

Jon On and our Financial CEO; today Chief Chairman Acheson, Sabes, the Bill me call Officer. with are and

we'll to take remarks, questions. our Following your be happy

order live. question will You ask to have to call a in, in

cause certain statements, assumptions risks are with made uncertainties. forward-looking any today, projected release and these are or on found subject undertake as including events. and results and list based earnings today A actual statements result statements in statements be to Some forward-looking our most sample our could update XX-Q factors we along forward-looking and results different call Any materially can obligation made as the financial reports. new statements the to a be from information XX-K to no and recent call on future of of in that of on risks

with Holdings. to And is CEO, of website tab. at and be call, you'll hear and Replay through enhance to I numbers available going financial today's believe be GAAP we Investor performance. Jon will available their it being over the Relations by the our of in release available to website. various Chairman recorded press our Please to details found note gwgh.com call as will our numbers which of understanding measures, Reconciliation can non-GAAP GWG a respective on conference are the Sabes, webcast. the turn references non-GAAP During and that that,

Jon Sabes

earnings following and tuning for everyone report. in Dan, today our and you, you thank Thank QX

slides where at feature. today, is the So communicating where helpful it's hope We in we're company. and we're we're terms with of new going that a using which

and great. all is And so this new

doing reminds is of let's So with what purpose I it start we're would and with to why. because us purpose. start it like

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how highly becomes as have GWG opportunity So and focused on this market extend the it. how leader in a company, we a to been

access that hierarchy. expect So we some are are in or Appointed Program report life and secondary market? are this involves marketing who what QX. insurance market building. overall excited the strategy if to insurance is been we in focused the this of LifeCare what direct how this distribution in us, who the I this under slide we has is And show with following now and that effort that Chris the that strategy – under I hierarchy this spoke really But next QX. have on close to our broker the is The or success you that policies and the company heard, Exchange execution or independent expand about year-end retooling it in to Agent just the clients This which in are just so seeing. strategy. indication early our March you use expand We have force. strategy life me we by we're the when are on position the program and in that highlight contracting we suggested our result organizations, of be is as and to may about would opportunity the strategy. doing work with work agents this we this has what this we report that Orestis, of we're at been of doing do, means And BGAs market. that to distribution DXXX agents, really just IMOs We to able general which their been the the are a with order gives branded been eight you going do we've We to let we've our months.

and policies policies, bring And you're BGAs, we their over roughly looking to that opportunities almost in these slide broker now general our billion life LifeCare agents Here that is In BGAs with are we sold. the qualified as these Exchange. uncover insurance in at underlying to $X totaling BGAs agents, the X,XXX three face. working policies deem total, and have

opportunity to to is relatively of just market, in able on small in are compared the And average said, to these $XXX,XXX numbers report exists drop So and started. insurance future. figured The beginning about share getting face we're look We're forefront effort, give this strategy majority are you the guidance conclusively this through but like how how on I'm And very you is marketplace. policy you on at to by exists and and been Market policies and pleased GWG, in we participants a able highly I out be show we've that numbers in how big the broad-based to have when are of historical this year-end like many with continue these life to excited complicated market. super the size here these March we'll of focused back, today. then that value. $XXX,XXX with secondary to as might this. to that It's the market we the we access this. execute And how not do to

secondary products the distribution this of regulators based class market industry the out these true it will And are terms is these the new our In We're on market. practically and in bringing And of products. the principles. industry literally to bringing be products and GWG in products building developing of is leader these interested strategy, DXXX innovation. consumers supportive a and

about the source can the for portfolio that in shareholders. to fact, the want market DXXX a some terms us This for we're of absolute good to Investors we have non-correlation, we we our overall to terms This for assets been that when generate continue for credit rated in to of that policies the the is at creates source years; growing In demand an in this prices we also be and pay own. have life increasing growing policies, have This we're buy the the we the it of terms to in environment. is we've asset investors, and yields of settlement policies obtain. competitive but interested for broker to growing able and that continue is, investment-grade steady, will DXXX, of decreasing large returns. strategy is talking though value pressure good seen to extent the sense it a reasons yields of – return its in produces from value, develop traditional in

little what now spend take And that – turn of discovered a it on Horvath have terms to a to marketplace. subsidiary, is just biological an is. and and when we're time epigenetics epigenetics it's of of a time clock this business we to science I'm the biomarkers. industry to moment and by the biological completed Life to driven humans to This reset in doing moment a we me little the Dr. innovation Insurtech, bit as way. our let Insurtech recess Again, a in different a that So going measurable Epigenetics. in introduced age a what XXXX, on take he epigenetic Steve biomarkers that exactly based and is work a exactly

this XXXX, insurance individuals the ever said, I from incidence not. the it who together. upon mortality. in I life said, does and understand And in applied of predictor. older that exactly. Does working have Horvath And Yes, heard What and measure was age in I mean? XXXX, discovered And epigenetic based person when patent that and are mortality And what or have you let the and can for this. age that we do. a me age Horvath, methylation for of And Dr. so XX No, Horvath XXXX biomarkers. XXXX the two difference higher has the So said, I began he we the Dr. the with as Dr. will of all-cause met have found and he life And patent And differently. said, published And basis Horvath insurance that industry? is what they licensed of Dr. the was he industry. that filed predictor exclusive that in patent out DNA global years biological

So mortality predictor this own. all-cause we is that an

finding to traditional methodology we're And predictive This for work's on Now by variety first also with of develop And and own the who underwriting working applicable the predictors we a GWG. Dr. Dr. biomarkers all research. being are of factors. can life been are author these Horvath traditional was on proprietary are underwriting we this insurance industry. epigenetic the of of done predictors, Brian a Chen, that other that have that

I have in Epigenetics. time, I first the for and is tell predictors I of insurance out can't So and is Vegas was remarkable. our company epigenetics them out with rolling promises how we about be than recently will What attendees Connect we had about been Epigenetics epigenetics companies that And the to represent foundational opportunity There to of conference. closer this were the in Conference. life Las I'm with they at you Life the truly Epigenetics industry's pleasure conference. many epigenetics have and insurance for evolve global the bring the think. reinsurance heard at call, X,XXX to largest and you the that convinced and and there Insurtech we is Life proud industry enhance insurance talking future Since last companies technology may over the This the that Life the how major business. this future.

these is carrier. are – who test very test. biomarkers disruptive expect when for We're the XX-K, industry. exhibiting a start And we're carriers our year-end, executing. investors disruptive comparing the be can't to large the have epigenetics and thrilled further with scale total, Bill and those. were again, carrier technology. time, epigenetic with about been scale report guidance business. we of Acheson, I'm engaged against working improve by In in to highly and insurance It's to fact, I'm providing been for enjoying. And right you a consumers purposeful that the But At again, can with – yield and conversation. enhance the He's We're industry epigenetic strategies March, how Chief continue We'll a decade help they With today. we [consumer] insurance shareholders. we're we give on to what force we've on same truly One further I two small this strategy In are points proof the to the have mean market a a secondary presentation active their another going relatively and large exhibiting over to on creation innovating been [indiscernible] that, some are life focused now be to turn to provide the a behavior January surrender sorry, in how discover to and carriers with over in have to are been is traditional help value carrier the to this that of We've testing. our consumers. the common in our graphs on got our really more underwriting announce to we'll going us we test XX,XXX other that value I Officer. number we with excited to units. Financial call our a we excited

William Acheson

Welcome, on perspective, gone John. of a just do do a little we've is more it we'll more calls, go through it little what said as much with to going business long-term everybody. a through And detail. in but I'm previous because is times, business. I've this several Thanks, we'll it

longer-term through basis. that a on you so at to go the And metrics various need look we'll

we a more And to maybe meaningful figured so be little that you. this would

it And selling business. sales capital is always broker business. as partners, our size. our have can dealers of the in this about a So do. front group alternative talk as are capital of from And our invest very in starting you record our graph you, see – we is intensive investment and We to advisers financial independent because we the raise who from us top

we're have seeing As non-correlated sit strong we advisers, dealers XXX-odd a for here continued investments. X,XXX demand broker over today, we still and really

group, with sales we've the this eight through are perspective, group the not So we've group. raising we for been This of From we're producing an of a $XX investment in last really are progress in very selling results group – terms investment you million years third selling above quarter but we happy raised. think our that we're made and the this when about capital sales. near-record is a where size surprisingly, capital our the in row in

between past our our As in the four you the and redeemable quarters, preferred graph, from can it's roughly XX-XX split stock. L Bonds see

those kind equally investing on I about more that alternatives. say continued pleased assets longevity-based in selling I for idea had as seeing, institutional of the that leading And well. also of becoming also supportive the we we're are is what I of John interest mentioned, from mainstream. And macroenvironment said would investors, So a are think,

so results in And our we're distribution. record this in seeing alternative

portfolio, see when little look we our look our this – at kind Now at really we John of And take we set a bit. a purchases. up

from I has challenges to that they're quarter, that as want, we want. fact, being a really that of of volumes to lot we rebounded our the we're the prior don't Although run, in others quantity you that fact And intense long broker underwriting comfortable about buy last that just of we four purchase us have over while long at the high yields say John assets and we're down And call, do And short the seeing were we're quarters this mentioned, seeing a from in definitely just assets areas have not And or portfolio see ago. institutions in with that space. in five the that talking super the this term. to priced a our seeing that market can positive. in at we're term, it, the we is to from want think interest features competition with. the In

And I next this we're would so. the in quality, sacrificing continue broker And order that so in for we the that to some expect say or would quarter the preserve quantity. space to

for that We've I to And more medium the point for portfolio is, presented the the bring to we've next it we're diversification be I to that starting better flow, the And of the space we our which rated as cautious channel. of consistent future. We've no bigger We're at more Now reality in pool That's – that over look here, options that market. last increasing. financing two to have. direct, slide, market the in see active year-over-year in stranger the securitization. alternative financing for growth. And to XX% interest for mentioned, at years, we but the we'll it going possibility the is now the do company. graph. nicely think is the it a broker that, something begins also John importantly, the the policies for the value think also mentioned From the create the relaunching maturities. to from portfolio. on getting time mean about lead and And next time, use the within we following continues part this us to about but options to been DXXX will looking things. One business, securitization what at really is business. of will it's may the gets, the is I those couple who've put more the viable I that think growing really least, portfolio be on been our But good. the cash in relates doing about two And we other assets Or pursue to John really net our securitization. you to are more as and within the and of I optimistic and perspective, are that more it's see ability concept grow. very we're And to think, a can term DXXX talked still more space lead deal with the be that the direct – a pool in And is over which seen that. years, And overall as by we

the here aging look a the life again, of age, insurance at policies nicely. taking very So breakdown further by

bar. You can see in the yellow

over $XXX million XX. We on benefits of face amount are of greater insurance than

million those older. $XXX to benefits on aged or up XX now are We insurers insurance of

cash it – you long again, term, realized. think as marches while for we've been these And be be this may the yet. so But of forward, will and a nine flows years portfolio building this as still it

and quarter quarter. we're QX recognized year. Now QX those seem of now benefits have historically four just in this and the as been the benefits the the a that the in first quarters high of to have most side We note, of

through lumpy. $XX can comment. cash more we the better points. circle cash And are portfolio that XX here, consecutive see on So XX% let's you press benefit flow really really that realization. disclosed benefits the have coming that this quarter. on we've to of we five the to six important million consistency. over In this of a the the is date, shows are last all graph October trailing up going fact by at QX. following today, we And of over quarter, first is still my the the months, has on see weeks just And earlier Number look already be been quarters, our this QX And have pay to this brings than so beginning one, statistic flows XX% And and we to from to to we our of a in couple evidenced a the policies follow. of already realized those this or had the had in the premiums first more in release,

bounce So are and high expect our maybe previous to history QX also to it But that around. validate this continue number quarters. begins historically QX to

So we're to that regard. in start off good a

that balance done our is talked And for large sheet, appropriate Looking a have and we've balance that. we for improving and one at portfolio about sheet growing our a lot growth.

into we comfortable Preferred reported on our XX% of was had And took quite our We What size had Secured convert and a the retiring for amount a not for option as balance our it's of continue that us we the preferred graph. the come I just a We here other heavy couple A the range on stock, the sheet. our debt that leverage actions into line release, charts that press see Series Series And has record our strong a can asset of that Stock, on shows you stockholders common. outstanding. down you and is a equity, Notes, redeeming which which around some was growth.

that, only to common our redeeming of XX% shareholder. we also but very eliminated relieved So we by potentially ourselves dilutive dividend a security not a payment,

quarter happened which we're very that happy So in with. the

Next, restricted cash cash let's any around And to liquidity provide debt, as flow cash, cushion to because policy cash you need would cash at a and here consistent, define have keep that we We take disruptions make plus or And benefits for the super flow delays. a that And liquidity. profile yet redemptions. the sure is be at the that receivable. buying want have reason policies, this you we to cash we enough a look managing be servicing to as around. look is

we more allow senior more to talk end to facility graph, just have over place going a put this the of time, we presentation. about invest But the We'll just quite in us bit for senior liquidity. this this of at is facility of So that cash. the

the of upon drawing comes from excess the this the begin depending and from I into down. now news the number the But starting process spot. we're – So is, would we're right going to it liquidity think earning see good how cash assets. going you'll We've got portfolio,

line and there. look up Look our First, at financial at take revenue expense a the results.

the in volatile it's blue portfolio with is Our revenue jumps with around benefits as still realized it a bit growth. and and

of costs with But flattening graph, rise interest our costs bar SG&A, our you kind continue to the that increased our line, out. our SG&A debt which shows non-interest outstanding. Our are is

the quarters been in past by revenue expectancy life our has Now impacted few updates.

portfolio, portfolio, what ones. internal we Now policies update we is, on our that? by our is in on that certain required periodically, on life policies, as own, senior expectancies our That lender the by and the

can And think of and of and are life insurance if owning it maintaining as really a policy of situation you and will. feature portfolio specific. a these new just large appraisal, You events getting is this a

they so And occur.

a it them Forecasting like very go so – know you'd of is now Taking these financial we our and P&L come and do But from and and our basis. will to to the don't we GAAP with a as try feature results so. that of is a at timing thought look events. difficult severity

are, be Obviously, see, in we've show near more this And to of yet the to negative, some to this continue to end sit believe quarter. as growth. to results quarter, some can GAAP territory But future. again the where case And and here think, start the had as quarters high Our benefits amounts in that be will in or our will positive highly we've our case been policy you still GAAP breakeven. had and at into adjustments correlated long benefits, but the LE we discount of I continues achieve rate by the partially third term, that over were viewed adjustments. offset we picture we've to consistency, that we the wise

attributable shareholders from mentioned We about results, of revenue on the adjustment partially year We had impact from to period. $X.X $XX.X fully detailed And of that million. is pretax I down basic million. share rate of That's lower change This year a policy looking numbers. revenue of volume. of GAAP had These diluted are positive was which we was new million. reported $X.X loss $X.XX ago So the $X.X LE offset ago net $X.X from up by common million a at purchase million. on $X X% this and discount million, a of per our purchases

four this $X.X to Those from one $X.X million. million year are of Realized up $X.X third up on on year you That benefits. quarter – was benefits manifest totaled period a $X.X a million this $X.X in higher bit year and of million was realized policies eight seeing million number compared sorry, the in the P&L. in period. the gain the ago quarter from were ago little policies So this itself

investment, million. Our I seen I our was kind would we certainly this point but kind total And a really have SG&A that the sizable future – quarter graph XX% increases the costs of in out expenses up That better ago, expect not year a we've plateaued. do $XX.X was, showed graph for little year-over-year. although do were see the from previous of

now and non-GAAP of the few right measures. and try and project smooth graph our is you policy won't is to lot sitting on sitting out dotted our we at look benefits. a what the that that of the income in in just gold in spread really Looking the that's cost non-GAAP is and The event, to policies our to prior calculate spend the value amount blue our measures just total attempt now. the line screen is and try economic is simulate understand have but portfolio time We And the recognition there. we to line at right on this to line portfolio. in the maturity face – to to our basis that lines a it, those That's the shows

that it know we when spread going going to. come is eventually Now we don't know but is to out,

And that yet mature how like comes of the give gold collect an a $X.X Obviously, billion of top try between that top said, I $X to there. our that's be we tomorrow, so potential million. when which manifests blue that line we but the and the the is unlikely measure to out seen, of that line, non-GAAP to illustrates worth itself but spread highly the to were if And entire and the that there's in billion measure. is portfolio you example, would difference $XXX with

accruing fact with basis results, our we then on as value. our we the $X market cost yield premiums our on income shareholders. to was to opposed cost spread. our you fair the that are expense which non-GAAP that we non-GAAP, for that loss net when [indiscernible] and non-GAAP to And start capitalize is them for So a we And basis, We increase GAAP that interest We GAAP. at common this million. look simulate reflect

total all you of those reported million. If $X.X for up we adjusted net non-GAAP an and this income quarter

facility and Now to credit full And value for about goal. Q&A. an from of senior had credit time perspective, finally, at the financial before bit earlier had it these in of our press primary our the back on benefits little turn the spend policy we we a we I closed is the that release we talked Carmen a want little amended our senior realizing facility to a end quarter. announced

to to so is a pledged was XX-year we And can senior facility that It facility, that that our to we limit up the the really similar XX years. capacity increased benefits. the perpetually, force, facility significant, the portfolio this amended, policies created which facility to also committed want goal. borrowing for we significant. So to remain which this premiums on this in is collect is however, fund is supports which $XXX the we million, And

our have we current premiums covered the – policy means for that years. on next substantial majority our current So of XX policy the the

that greatly which a time And it So risk. that of allow us policies liquidity And things. less and over current Number to which replaced. earlier, one, allow have carry it and it reduces we've taken earning cash into facility I it new risk is additional we from a continually feature, it's talked of us finally, the to care us a reduces for couple capacity it risk, will the more policies to create liquidity has allow of, new mature. their you does revolving is feature our a as since liquidity put premium that mentioned to the about it's as And to going burden assets. going

be policies as And build but grow we're be a use years for it have able a we're facility our not it's time. XX today, view going this to we and sit business. really to long over that that to appropriate for going only next there to to going So the the

in significant very a QX. So result

remarks. So over a end Q&A. my for I back the of turn it to will that's Carmen

Operator

William our Roth with of from first is question Partners. the line Gibson And Capital Instructions] [Operator

line sir. open is Your

William Gibson

number, Hi, first big accounting has to relates question crazy. to small policies the Are my that counting that which to always number? been all get they

Jon Sabes

They Yes. total in looking force life $XX at owned outstanding in of Bill. United insurance consumers around are the trillion the by States.

William Gibson

of out Okay. just companies testing that come this – or are that Vegas epigenetics, I surprised your And trip, the they're insurance the on at that did early? guess, I'm two

Jon Sabes

come came Connect. at out prospecting. not out Vegas did business trip Those our Insurtech the Bill. of, Yes, of development Those again,

major conversations with We carriers. right are the now all and reinsurers throughout major in industry the

William Gibson

do And the how that that, it for will the basis to if the license or business plan is your per unfolds, policy on you is be And technology? see model?

Jon Sabes

one of Yes. discovery. will That's part believe company. business still I a akin point core of this – what testing be at to we're

insight them carriers a give Dr. as be we epigenetics providing and an and Horvath's variety will them that we So mortality things providing from to can testing insurance derive all-cause as well alcohol our underwriting factors of with to such scale the think traditional into both as that's factor we use, work. smoking,

industry this, of could was interest positive, progressive Yes, of by that the anything conversations I we grab interested the the been few of industry will Insurtech I've opportunity. carriers, close tell tell felt the carriers and across Connect, we're that's the of – as to one quickness no clearly, thrilled though that one, and having to I more else the in have onto surprised the I'm future very hand from are with a all development very but had that I very you I just business At So it. the activity. the open-minded anyways

that's model. So business the primary

we'll I is with on capitalize I will if the on exclusive we opportunity. think know that that be carriers don't how working on.

as that participants. further to more with So on conversations pike we on get the industry down the come

William Gibson

Thank that? present then the net question your a have providing Q, you, Bill, figure and value in you stopped for

William Acheson

for lot look in It There's know. It's a No. I back the MD&A there, the Bill. there, to section. question. be it in Thanks should at in still

William Gibson

you. Thank

Operator

the Chance is [Operator Instructions] of Carson And from our line with next Intervest question International.

line is Your open.

Chance Carson

Hi and Bill, are how doing? John you

Jon Sabes

from hear to Good Chance. afternoon you. Good

Chance Carson

the would of the facility L-Bond you too some – preferred to many can't might used as still or shelf I got us I bond mentioned offering and you're sorry, it. products mention Bill, flows public And heard project in sell I'm be remember impression offering. how I purposes. preferred have I'm some out going for to distinct as phasing wondering, for as is the you the be you'll the and cash means Hi that stock. more the to to preferred credit Yes. investment be listen, the months available public years that this and/or

dilution. equity thoughts to two want us to products just for availability going clients What of sell on more our your these are forward? the You don't

William Acheson

question, great Chance. a That's

our no retail distribution. on We plans have changing not significantly using and

funds facility at so great diversified L-Bonds XX-year give premium as term line, we diversifies is funding. think, advantage also look cost complement you the know have sell maintaining but nice like and and provides that to we base. shorter you the investors to best very a funding the I products a backstop a way I well, of mean, one and relationships redeemable us a people the that is which bit this a to with real nice our preferred of the it are of benefits the with which is because our

our market. the something in want So event, unlikely to to the provider, we capital in were happen maintain a to presence

So we regarding don't on major see horizon that. any the changes

really it are line – well. As the what's decisions preferred probably certainly that line one. it to our when to institutional happy We'll and that happy as through look the halfway not really relates completion, at with to meaning closer individual offerings, next, retail we're take specifically and the but we one we're and business as gets about with a

Chance Carson

something? when or Thanks. cut may get another policies you you the see in we'd Any mass, rate interest When critical to would be X,XXX bonds? anticipate [indiscernible]

William Acheson

good where now yields. right with our are don't forecast. question, another that Chance. I have That's we happy We're pretty

what to over we'll look for that. we'll I think, something over that. rate environment time at interest in rating at of quarter or think the so, time But or what be then, available I is next options is, become like at but we what time, course, will the look expect happen the I don't it do

call of don't think the right now quarters on shelf the here we we to two sit change about it and worth business, anything us as have So our rates. next let

Chance Carson

Okay, thanks.

quick earnings $X you when basis? many earnings how – per or Another still I'm gain? that non-GAAP million share. Is loss said, What but dollars about $X.XX forget millions on is – was a sorry, GAAP you or of a $X it loss to it the I non-GAAP does share relate question, the a said million a

William Acheson

No. would gain. $X under It just share, be basic a share

Chance Carson

quarter ago compared I non-GAAP for share how but this and mean, $X it's under to a kind year much? for a I earnings the that little, year? down the of How's trend presume

William Acheson

it Yes, just I'll me and pull one I give up. here. that second have

see. down September ago bit. year yes, Let's It the versus a $X.X little ended ago was million. year XX it's $X.X Versus period, a million

ago. The little were by volatile under it, way little little a slightly same year less to we a tends – but for do So some be bit. the of non-GAAP reasons mentioned, I down where a we that a more the

Chance Carson

Okay. just been the it priced do due climbing the like policies acquisition is of to reasonably broker And of because, rate feature? you think Or you that's Is has any...? some there said, competition? other the

William Acheson

is as GAAP. generally come you it, of an on GAAP as the portfolio mature does running it's that out your will the – to what moves in to but impact and your that income, same portfolio, with Given start whatever policies But typically through in net remaining more fashion so related have GAAP non-GAAP. the

Chance Carson

last last these think, I and One change something, was remember? common value or net quarter? of I or estimated like is question, the what stock it days quarter the sense. makes That asset this if $XX

William Acheson

it. stopped Well, reporting we have

me. not don't can in any It's I of have you. use that I it we one front So calculate right longer. for it certainly

We have discontinued a that few quarters ago.

Chance Carson

analysts do you kind that? Were that did Why of thinking the was…?

William Acheson

that coverage just around, amount value. was down – we It's like We there so really thought things that really our yield. different it use what was already We that significant of describe how came we to many another non-GAAP, didn't around around measure it. was a ratio, feel adding debt

Chance Carson

what per the to on price me features? of preferred me Okay. the conversion And common? annum remind percentage Remind conversion of quickly is? Just of the the

Jon Sabes

I $XX.XX a it's share. No? believe

Chance Carson

$XX.XX.

William Acheson

$XX.XX, and then the holdings. XX% of convert up the is to

Chance Carson

It or higher, one? $XX was something. it? $XX much the Why wasn't it on preferred conversion And was or price Okay. it was

Chance Carson

$XX.

Jon Sabes

$XX. Yes,

Chance Carson

Okay. so am Well, job. going And the John, guys, on what's I great think I epigenetics. you excited a about are doing with

the I potential real I'm value net think sure has in some contain that the you are. do you asset company as your gains How of excitement?

Jon Sabes

just in mean, of frankly silver, it's about picked we're really this in for pass itself. with to be But how product – able like? issued needs? are the and terms I starting And the of life phrase look efficiently, – And the we're be then we faster. address to focused don't more promises backwaters to by how gold. the And be it I should should it on what consumers' cheaper on industry. accurately think the we Chance, frankly of insurance search more up, front-end, it kind Thanks underwritten

story, but broad think, shareholders. to work we've initiatives we tackling, compelling So think for I wide. is underway. It's we're it's across major the I and bit industry think, the message big I a have exciting received, We've it's a do. really built our being quite of a And got

Chance Carson

sale question, final pretty more bring trading the final, Final, of and common on ask spreads very and the As is offering, secondary what's modest are is. thought up? to the the gappy. Sure shares you know, liquidity bid

Jon Sabes

Yes, we common. like We'd We're feel it. of the pain cognizant your to there. liquidity create in

Epigenetics. Life kind as all in more that I to I mentioned, is year-end, want technically, some of QX few to you after but to execute. more we get to of to be to proof March we able relative points, a feeling proof points, DXXX really Our which report see and expect With

I proof points. have those think, we

who For that that the are in to the validate investors for for secondary. a of platform the will business. for provides it And as growth truly the follow up be interested better the executed worse, the I sets and to believe kind story the to for opportunity better for expectation or analysts really properly us

Chance Carson

agree Now pretty that Thanks guys. I you makes with much. sense.

great I so think a are love your doing and you My offerings, clients do job. I.

Jon Sabes

appreciate the I Chance. support. Thanks

Operator

next question our William Roth the with line Capital Partners. Gibson [Operator And from Instructions] of is

open. is line Your

William Gibson

our One follow-up, joining? point life reach when tipping insurance the do for think we agents you

Jon Sabes

just strong. Bill, to now. Hi, numbers we think insurance our are Those it distribution the right life are flashed relative work – on I initial hierarchy with I Well very

Our pipeline wide. development for business is

of life services relative found have for insurance life value-added exchanging new a I think to traditional it we message to a finally settlement. as opposed process

how look of so annuity for the in transactional. will, market broader sale to a the more When the to for of, another at and insurance much vernacular companies And the be that encourage open exchanging the say, product an one insurance life think, or I I that regularly execute see industry, continue floodgates we continue I insurance to the to really speak policy and promote exchange industry for the consumer I the for little long-term upon value these start a of, the readily get only guess products a values product. consumer massive say, access surrender opportunity progressive, deliver a carriers values the that find to sell the insurance offered. they'll based or is that to just surrender ascertainable that I cash bit allow to to market their want more clients value care that assets let's there and own.

conversation to of of kind the more distribution. the with contracting prolific that's these are working sort that their nature of market, having and the – industry in we're So products large to be us allow aspects and once across the now distribution brought of business

a long-winded a ever my close it close. It's in with history seen we're working So but as industry. as to I've big a answer we're to short getting the It's company. of question,

William Gibson

you. Thank

Operator

and call Thank to this his Q&A like and our concludes John to the turn Sabes I ladies final you remarks. session gentlemen, for today. for back would

Jon Sabes

our of expectations about talked the execution execute have strategies as great to our reporting tuning validation been in a to our everyone QX addition interface Great. to I forward call. on today, to and We look to we the things slides the results has presentation. Thank you for QX in come. for of hope you and value-added again our to further continue to and

So, Have great a thanks again. evening.

Operator

dialing that in. ladies conference for our you for today. gentlemen, with And Thank and conclude we

all may disconnect. You

GWG (GWGHQ) 10 Nov 172017 Q3 Earnings call transcript