Prepared for H. Thomas Moran, Chapter 11 Trustee of Life Partners Holdings, Inc. LPHI, LPI, LPI FS Lapse/Grace Analysis As of April 28, 2015 Analysis below uses data gathered from the records and projections of Life Partners Inc., which has not been confirmed by any third party Projects are currently underway to verify LPI data and calculate minimum premiums required (optimize). Chapter 11 Trustee will need full cooperation from Escrow Agents PES and ATLES to reconcile escrow accounts. Next 75‐90 Days $ 3,760,179 849 Next 12 months $ 18,295,231 1,824 Policies in ATLES System Next 3 months Next 12 months Premiums projected by LPI Less: Cash surrender value available to cover policy costs Premiums after use of Cash Surrender Value Less: Escrow funds available to cover policy costs Funds needed to keep policies in force 22,854,175 17,390,768 (a) 5,463,407 2,694,268 (b) 2,769,138 85,500,084 66,427,487 (a) 19,072,598 7,483,544 (b) 11,589,054 Number of Policies facing near‐term lapse/grace if not funded Death Benefit of Policies facing near‐term lapse/grace if not funded 52 142,487,896 137 445,577,728 Beginning cash surrender value in policies Ending cash surrender value in policies 135,132,167 117,741,399 135,132,167 68,704,680 Beginning escrow balances on all policies Ending escrow balances on all policies 52,814,337 50,120,069 52,814,337 45,330,793 Next 75 Days Next 12 months Current premium deficit Policies that will lapse/receive grace notice if deficit is not funded Policies in PES System (data as of 4/21/15) Premiums projected by LPI Less: Cash surrender value available to cover policy costs Premium after use of Cash Surrender Value Less: Escrow funds available to cover policy costs Funds needed to keep policies in force 5,944,130 2,987,786 (a) (c) 2,956,344 1,965,303 991,041 23,212,040 14,540,560 (a) 8,671,480 1,965,303 (d) 6,706,177 Number of Policies facing near‐term lapse/grace if not funded Death Benefit of Policies facing near‐term lapse/grace if not funded 797 NA (e) 1,687 349,219,695 Beginning cash surrender value in policies Ending cash surrender value in policies 51,922,704 48,934,918 51,922,704 37,382,144 Beginning escrow balances on all policies Ending escrow balances on all policies 5,164,675 (f) 3,199,372 5,164,675 (f) 3,199,372 ALL Policies Next 75‐90 Days Next 12 months Premiums projected by LPI Less: Cash surrender value available to cover policy costs Premium after use of Cash Surrender Value Less: Escrow funds available to cover policy costs Funds needed to keep policies in force 28,798,305 20,378,554 8,419,750 4,659,571 3,760,179 108,712,124 80,968,047 27,744,078 9,448,847 18,295,231 Number of Policies facing near‐term lapse/grace if not funded Death Benefit of Policies facing near‐term lapse/grace if not funded 849 142,487,896 1,824 794,797,423 Beginning cash surrender value in policies Ending cash surrender value in policies 187,054,871 166,676,317 187,054,871 106,086,825 Beginning escrow balances on all policies Ending escrow balances on all policies 57,979,012 53,319,441 57,979,012 48,530,165 (a) Cash Surrender Value held under PES and/or ATLES policies. (b) Escrow balance held at PES and/or ATLES, excluding death benefits (c) Estimated based on full year figure. (d) Only the 3 month figure for escrow balances can be tied directly to any specific policies. Assume same figure for 12 months until further detail is available. (e) Difficulty in linking face value to policies in PES system due to differences in PES accounting numbering versus numbering at LPI (f) Per LPI report dated 4/24/15, see note (d) as well.
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