In its annual report released on 30 April 2024, Life Settlement Assets (LSAA) reported that it had acquired the policies held by the Mutual Benefit Keep Trust (MBC) and that, at the time of the annual report, the US Courts had approved the transaction, and LSAA had paid the purchase price for the policies. LSAA already owned the beneficial interests in approximately 66% of the value of these MBC policies and hence it would receive its share of the proceeds, less costs, once the winding down of the MBC had been agreed.

As a post balance sheet event, LSAA’s annual report also said that “Since the year end, the Board has been informed that the Company should receive additional proceeds from the MBC Action as a result of overpayments of premiums on fractional policies made on the instruction of the MBC Trust. Whilst the amount of the proceeds is still in the process of being quantified it may be up to US$4m which, once verified, should result in a further increase to NAV during 2024. Due to the lack of certainty surrounding the amount involved, this has not been accounted for in these Financial Statements.  In the circumstances, the Directors consider this accounting treatment to be appropriate, but it gives rise to a potential understatement of net assets, which has caused the Auditors to qualify their opinion on this specific issue. A further announcement confirming the final details relating to these additional proceeds will be made when appropriate.”

LSAA now says that on 28 August 2024 it received notification from the Company’s trustee in the United States that the monies amounting to US$9.7m had been received comprising the first tranche of the sale proceeds of US$5.7m and the return of premiums of US$4.0m. LSAA says that it is in the process of reviewing the information received and will incorporate this into the net asset value for end July 2024 which is expected to be announced shortly.