Webcast Guidelines The audience is in listen-only mode. Please questions via the Q&A panel box. Select audience questions will be answered during the last five minutes of the program. WebEx customer support:

Moderator Donna Horowitz Senior Editor, Life Settlements The Deal

Expert Panel Daniel Young Vice President, Portfolio Management Vida Capital

Expert Panel Jule Rousseau Partner Arent Fox

Life settlements - Secondary Market Daniel Young Vice President, Portfolio Management Vida Capital

Dan Young – President of Magna Life Settlements, Inc. Magna was the Number One Provider in Industry in 2013 Closed Most Face Value and Deployed Most Capital Sees Large Policy Flow in Secondary Market Mix of Captive Capital and Third Party Funding Sources Owned by Vida Capital, Inc. Consistent Capital and Execution Diverse Buy Boxes Due Diligence and Execution Secondary Market

Secondary Market Advantages Consistent Flow Consistent Pricing Control Closing Process Barriers to Entry Policy by Policy Selection Insured Involvement in Process Secondary Market

Policy Supply Quantity Down but Quality Up Average Issue Dates Prior to 2003 Average Age Over 75 Years Old Average LE Less than 140 Months Average Face Less than $5MM More Policy Owner Awareness Policy Demand Low Correlation Increased Regulation Attractive Policy Pricing Improved LE Accuracy Secondary Market

Life Expectancy reports and face amount are not the only variables to consider for valuation of policies Other Important Factors Underwriting Class of Insured Premiums Maturity Extension Rider No Lapse Guarantee Break Even Analysis Policy Origination Secondary Market

CURRENT DEVELOPMENTS IN LITIGATION Jule Rousseau Partner Arent Fox

Current Developments in Litigation  Brasner trial court decision— good faith required, challenge after 2 years (Pruco Life Ins. Co. v. Brasner, No. 08-cv-80804, D.E. 246 (S.D. Fla. Nov. 14, 2011); Pruco Life Ins. Co. v. U.S. Bank, 2013 WL (S.D. Fla. Aug. 20, 2013))  Cotton trial on good faith—impossible task (Sciarretta v. Lincoln Nat. Life Ins. Co., No. 08-cv-80427, D.E. 150 (S.D. Fla. Mar. 2, 2012))  Appeals now in 11th Circuit (Oral argument in Brasner scheduled for September 10, 2014)  Discussion Points: FL Stat on property/life, prior cases, and leading 11th Cir decision Florida law—what can we expect?

Current Developments in Litigation  U.S. v. Binday, et al., No. 12-CR (S.D.N.Y.)  Issues raised for investors on cases?  Impact on market – Is this a new blemish?  Carrier truths about STOLI admitted in evidence; will courts ignore it as this court did? NY Federal Court criminal case—agents perpetrating STOLI

Current Developments in Litigation  Status -- Lima LS PLC v. PHL Variable Ins. Co. et al., No. 12-cv (D. Conn.); U.S. Bank, N.A. v. PHL Variable Ins. Co., et al., No. 13-cv (S.D.N.Y.)  Relevance to other carriers  Aggressive pursuit of agents for chargebacks Phoenix cases—COI, RICO

Current Developments in Litigation  9th Cir decisions (Wells Fargo Bank, N.A. v. American Nat. Ins. Co., 438 Fed.Appx. 838 (9 th Cir. 2012); Hartford Life and Annuity Ins. Co. v. Barnes, 552 Fed.Appx 664 (9 th Cir. 2014))  Fishman remains (Lincoln Nat. Life Ins. Co. v. Fishman, 638 F. Supp.2d 1170 (C.D. Cal. 2009)), Teren provides comfort (Lincoln Life & Annuity Co. of N.Y. v. Berck, 2011 WL (Cal.App. May 17, 2011)) California law—developments in last year

Question and Answer Session Donna Horowitz Senior Editor, Life Settlements The Deal

Thank you for joining the webcast.