26th May 2016 10:29
LONDON (Alliance News) - Alternative Asset Opportunities PCC Ltd on Thursday provided further details on the rise in the cost of insurance it may face on its portfolio.
The company, which invests in traded life interests on the lives of US citizens, issued a warning on the issue earlier this month, saying a small number of insurers have recently applied "aggressive" cost of insurance increases, governing applicable premium rates on policies.
It said that were the applicable increases made on policies in its portfolio, this could hit the company's net asset value by around 5.0%.
On Thursday, Alternative Asset Opportunities said a total of 13 policies with a face value of USD15.9 million will see cost of insurance increases range from 5% to 100%. A further 12 policies with a face value of USD14.7 million have been issued by insurance groups which have applied increases, but the company's policies are so far unaffected.
Alternative Asset Opportunities said it is not involved in any litigation regarding the cost of insurance increases but said it "shares the widespread outrage at the magnitude of some of the recently proposed increases."
Shares in the company were down 7.5% to 33.3 pence Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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