MINNEAPOLIS, MN--(Marketwired - Jul 17, 2013) - GWG Holdings, Inc. ("GWG") is pleased to announce that its wholly-owned subsidiary, GWG Life Settlements, LLC ("GWG Life") was granted a life settlement provider license by the California Department of Insurance ("CDI"). The license allows GWG Life to purchase life insurance policies in the secondary market directly from owners residing in the state of California. The license was obtained after a comprehensive licensure process. Beau Mayfield, Chief Compliance Officer and General Counsel of GWG Life, stated, "The CDI process was a true challenge, though entirely expected given California's thoroughness and sizable secondary market of life insurance."
Steve Sabes, President of GWG Life, added, "Obtaining the California license itself speaks volumes about GWG's business path as we continue to grow and evolve into the business we envisioned. I am very pleased with our team's efforts in obtaining the license and how it allows California's consumers greater access to the secondary market." GWG Life expects that the ability to purchase directly from California residents will add value both for policy sellers and GWG by reducing costs.
About GWG Holdings, Inc. ("GWG"): GWG, through its subsidiaries, is engaged in the secondary market for life insurance. GWG, through GWG Life, acquires life insurance policies in the secondary market from policy owners who sell their policies at a price greater than the cash surrender value, but less than the face value of the policy's benefit. GWG purchases policies, through its subsidiaries, directly from policy owners in the states it is licensed to do so, and through other licensed providers. GWG's strategy is to acquire a large, diverse portfolio of life insurance policies and continue to pay the premiums and generally hold the policies to receive the face value of the policy benefits. For more information about GWG, email: info@gwglife.com, or visit www.gwglife.com.
Certain statements in this press release, such as statements relating to our strategy, may constitute forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual transactions, results, performance or achievements to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. Some of the risks that could affect the outcome of matters involving forward-looking statements include: changes in the secondary market for life insurance; our limited operating history; the valuation of assets reflected on our financial statements; the reliability of assumptions underlying our actuarial models; our reliance on debt financing; risks relating to the validity and enforceability of the life insurance policies we purchase; our reliance on information provided and obtained by third parties; federal and state regulatory matters; additional expenses, not reflected in our operating history, related to being a public reporting company; competition in the secondary life insurance market; the relative illiquidity of life insurance policies; life insurance company credit exposure; economic outlook; performance of our investments in life insurance policies; financing requirements; litigation risks; and restrictive covenants contained in borrowing agreements. Although we believe that our assumptions relating to forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Consequently, no representation or warranty can be given that the outcomes expressed in our forward-looking statements will prove to be accurate.