AAP LIFE SETTLEMENT MARKET REVIEW
IRR CALCULATIONS
An independent third party is mandated with all IRR calculations. The settings for the calculations are summarized in Annex 2 of the report. The cash flows which result from the settings can be understood with a dummy trade reflecting an average policy. The dummy trade has the following characteristics:
- Gender: Male
- Smoker status: non smoker (NS)
- Date of Birth (DOB): 01.01.1935
- Life expectancy estimate (LE): 96 months
- Policy issue date: 01.01.2008
- Credit rating of issuing insurance carrier: A+ (AM Best)
- Transaction date: 01.01.2015
The mortalities and cash flows of the dummy trade using the settings for the IRR calculations can be found here.