GWGH - Earnings call transcript Q3 2019

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Dan Callahan

Hello, everyone. Thank you, and good afternoon. My name is Dan Callahan, Director of Communication at GWG Holdings. Welcome to our Third Quarter 2019 Earnings Webcast.

On the webcast with me today are Murray Holland, our President and Chief Executive Officer; and Tim Evans, our Chief Financial Officer.

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

be webcast online for your You the we'll them presentation. the of question questions dashboard, the end again, type can submit box, through look at text the in, taking question

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

participants Investor be text mode. everyone, is listen-only at are through being Today's but a note webcast will it recorded of box, through Please submitted the the be answered presentation. the will the available the website that tab. on end in gwgh.com be at can Relations the and questions Again, dashboard

it turn with that, President Executive and Chief Murray to So I'll Holland. over our Officer, Murray?

Murray Holland

and Dan, thank everybody. much, you very welcome

individuals events to for of investments. by assets corporate I'd of GWG including various our business a go for you the provide who our financial number and life quarter in need path events over liquidity alternative the results, like and Beneficient, third XXXX, The to that business Today, of metrics is liquidity items owned involve forward. with investment and overview, updates,

our cash, we strategy million. for of with settlements been of liquidity investment investments we has portfolio $X.X in of individuals retain we total are of furthered a Today, by these diversified billion, our over purchasing in life of consolidated insurance shareholders of our business have investments from have alternative still need out assets investments. $XXX about into GWG About Beneficent. Traditionally, and Beneficient, life who diversification X.X% assets XX% are equity assets, XX% just and

strategy including professionally provides credit for is GWG equity, as as investments of estate funds, strategy funds, such in in managed that to investment into assets. other these real investment a provides funds significant asset diversification private Beneficient invest GWG. hedge - alternatives provides Beneficient The diversification and direct exposure this our Beneficient funds,

the in largest on in private in the A will natural these of as private breakdown resources. such portions funds investments that XX over infrastructure XX The participate and real investments contained have class pension that are years estate larger had assets financial last hedge foundations the access professionally are screen. managed And to funds are of funds, now or credit, that's that investments, years chart institutions are individuals the to. just pie and global access BEN funds, endowments and alternative again, type of the getting equity

include the liquidity used for changes disability, a death high and other such individuals, state as business number provides of opportunities. worth liquidity the for provides these planning investment life life also primarily BEN They're events net and and and that So needs. traditionally of events, GWG divorce, are or

XXXX. maturities Bonds program a with had had last early number L in sales the successfully During we've including exceeded that XXXX. that the We quarter, we've August happened in of over events have GWG, restarted of XXXX

YouSurance over Life or in XXXX stocks, to investments. we've five new experience the Insurtech so. year Epigenetics We as been the the alternative in separation of disclosed have small-cap included of strong We've and hired we you Index with Russell begun executives Subsidiaries, sales and asset last the

Tim? our Evans, to I would of that, hand Chief it over Tim with to Financial like GWG. And Officer

Tim Evans

everyone to the thanks call. and who Murray, you, is on Thank

GWG's would through and we then GWG QX life and on few of I today, financial with continually on with our to XXXX items different liquidity then and finish portfolio news security our move metrics review; to sheet like talk our our strong the balance about the insurance sales, go a performance beginning position; portfolio.

with of So our metrics. let's begin a summary

that as As GWG, results be what our was do GWG that expected be brought very between at work at are always the at QX versus in in results we quarter-over-quarter, see QX similar what looking BEN really fruition. done its better a the QX can QX is to to we we to which quarter-over-quarter, preparing we done we've look matches connection and performance see had and as largely is in we've how investment

we So our net that had allocating rate as both less revenue driven is about we've in really volume. QX, two net as are Number new the what big side, income expected far in and This we $X one, factors. million of see pre-tax said by is assets on the income that purchase away lower capital policies. time on purchase gain, from we to for some be as as

there, $X.X that to is lower personnel from coming conducted by most purchase lower further in expenses million, transactions the that were enhanced in and the expect QX. related of expenses of gains would lower We completion QX see that to of about

So very quarter-over-quarter. similar results

is with go came sheet, a common see the equity lot 'XX billion, the right as with thing transaction. and another our of that we from we through and still balance our to and balance in that's size transaction $X.X under that strength increased BEN QX of - thing continue sheet of One coverage to similar value

We also see steady through liquidity. asset balance our

and earnings $XX that year-to-date or issued million of later was of end the was release at rather - that time $XXX million. the number at the in reported about liquidity in We QX

reserves forward. into by So we a committee as strong our we those approved hold cash preparing way to to continue investments special in going are that is send BEN

Moving on our sales. investment to

a low very August interest in We yields strong and rate in back the we part environment. the have relating to early that since attractive had attribute sales of

substantially can at under page, of were XXXX, sales. of of were just As close of had selling a QX where where we for already in we see were the chart at to where that quarter there quarter look of the 'XX full the that QX but we two-thirds was we the bottom back we we

So good but about sales Not investment happy very have the by the we sales, is quarter also mix very do there. only steady.

consistent we happy So it fairly coverage and we is have to attractive QX an the maturity of across there, at that we in the not the but see. we having XX.X% Board see debt profile are consistent mix, which XX-month liked XX-month and only where sales also a in consistent longer-term

still total million of $XXX age on is billion, amount portfolio our and moving in to about Then $X portfolio. life insurance over that the insureds The XX. face of

consistent to benefits we we the those of continue the are our from by So see maturities supported off those that of settlement. and that seasoning life portfolio earning more

the for profile large XX%. a Consistently year-to-date is premiums of chart we've benefits year due million maturity QX XX by trailing XXXX XXXX, in right and our in covering our is versus $XXX now, XXXX of at as had see where our to XXXX today, months part a premiums, in bottom the full-year exceeds that over record you this to can of position great date and

off of evidence and the in full maturities XXX% that. XXXX, XXXX the portfolio of of here seasoning of to year continued strong So we we're already the continue at sitting today expect

insureds for XX, can of In million the our of policy over that of of see addition age - the at of the age of we policies XX benefits to or older. XX% is years $XXX face

we We've only XX credit So do rated older. in risk. is obligors its have side the but the those portfolio, highly good the very age $X.X of And on or we $XXX other million of not billion the seasoning of that policies. have

growth do closer and Again, - and in alignment our next a see sheet the transactions. brings bring of BEN, of as we positive to we're to exposure that is path and ensure slide, a result doing way in the our of a On GWG asset increases impacts forward. that alternative balance we're those the that discussion GWG's what

other So questions back I'll it think for to turn with any Dan I that, or items.

Dan Callahan

Tim. you, Thank

to responding phone to. so and free we'll you. few if back We've your email your to get been don't will a have we're to don't by - a Again, call, questions, we get going to feel question, get we get us we some send be we or getting that questions

question been a first have continue for going GWG policies? Is purchase little policies. is insurance of one getting that to insurance we purchase bit Our is to the

Murray Holland

that yield Dan, answer to policies investments. the to out that that will can we purchase equivalent provide yields BEN of we expect is the the

Dan Callahan

us, is an who Gibson, who yield covers asks gross William analyst alternative assets? from on for question Beneficient the who another have We

Tim Evans

between range will XX%. and That XX%

Dan Callahan

worked question that Bill out of the timing Another is yet? has consolidation, been from

Murray Holland

continue time we companies. they're considering a at Well, for the and considerable process date that to the BEN there they're consolidation special a and between this further we've undertaken on of pretty amount GWG is is - quarter We the a, transactions the to and that last undertaking. the - are company to work work time over and spent considerable we significant respect of need the to preparing transactions committee proposals number

those the specific look can't to this at prospects are soon. time, we they're we're until - and items the announcing completed. we So comment on forward about excited until But

Dan Callahan

be Another question investments we with types have investing going the Bonds L you will is of proceeds forward?

Murray Holland

those BEN talked that foundations including are of of in will an professionally country managed in now focus a about providing the the walked earlier peer - for investments this as are and Those in funds, that the major are endowments a pension that invest type lot I and slide funds financial Beneficient, the these. right institutions Okay. of and through, liquidity be investments, the

Dan Callahan

who benefit successes have Insurtech the of Will Simon, the Business? question Insurtech of spin-off We a GWG the the Business. from David about from asks

Murray Holland

but subsidiary of for to economics of after - even The in own the essentially we the have spin-off. of equity the own of a and the XXX% Yes, we all number is we company spin-off that reasons, will. will today, will we done continue

Dan Callahan

a questions life have about insurance couple policies. of We

why give fewer the - for dynamics some What policies Some are that? explanation have been of us purchased?

Murray Holland

the policies. financing future witnessed with yields to while shrinking, been investments and to their with us, Beneficient significant have to decline critical that As a be have debt instruments in alternative that for And the Beneficient. the yield yield - had look the these and us we over company we're the And years, own. been last will there that is of five has obviously GWG for margin we've we've because at be has avenue of on represents had

Dan Callahan

status question seeking? We the of about that the has BEN charters have trust been another

Murray Holland

process on meetings. is questions a Texas, Their number continuing. the time are continuing State state of worked the provided number long those Board has considerably of a meetings with of Beneficient BEN rounds some of obviously state times, to up event, attended Okay. and two been a work for those and They has charters. is Beneficient and

the be We expect near - hoping would nothing were there that is had we continuing but see an to issued them will it be will it to them but would and end that I - be soon. dialog, that some now, we impediment getting by

Dan Callahan

life this a have believe you do income is the projection I profitability? could for And question. from insurance reach portfolio, but We you final love the when

TimEvans

have working near on sometime Well, disclose after that going we're can afraid show that answer to the in we the - we currently to transactions future. I'm after we're

Dan Callahan

will So thoughts. And some free turn to out. an to to and close for over final it answer. you we at I'll feel that, with with email are get we that, us have if going Again, it Murray invest@gwgh.com, questions, you

Murray Holland

to know an to talking Be Yes, and the year season, everybody we're greatest I don't too want the as everybody during that the we'll release early wish in eat safe be approaching season. holiday holiday and earnings you much. I next

GWG (GWGHQ) 21 Nov 192019 Q3 Earnings call transcript