GWG Reports 250 Percent Revenue Increase Year-Over-Year
GWG Holdings Inc. (NASDAQ: GWGH), a specialty finance company and purchaser in the life insurance secondary market, disclosed its financial results for the second quarter ended June 30, 2016.
Highlights for the Second Quarter:
• GAAP Financial Information
– Total revenue of $20.8 million, up nearly 250 percent from the prior year
– Net income of $2.3 million, or $0.32 per basic and $0.29 per fully diluted share, respectively
• Non-GAAP Financial Information
– Adjusted Non-GAAP net income of $6.4 million, or $1.07 per basic share
– Non-GAAP net asset value of $18.72 per basic share as of June 30, 20163
• Increased the number of financial advisors able to source life insurance policies through GWG’s Appointed Agent Program to 2,875
• Raised a record $48.2 million of capital from GWG’s investment product offerings
• Purchased $136.8 million in face value of policy benefits, of which approximately one third of all life insurance policies purchased during the quarter came from GWG’s direct origination
• Recognized $9.8 million in policy benefits from six life insurance policies
• The company’s portfolio of life insurance stood at $1.15 billion in face value of policy benefits covering 493 unique lives; a net sequential growth of $127 million
• Closed the sale of short term L bonds (< 2 years) and reset interest rates on mid and long-term L bonds to reflect the growth and maturation of the life insurance portfolio
• Maintained a total liquidity position of $58.4 million
“GWG continues to achieve record results across our key operating and financial metrics,” said Jon Sabes, GWG Holdings’ chief executive officer. “The value of the financial services we provide are clearly beginning to resonate as we seek to create a vibrant life insurance secondary market.”
Sabes added, “We know seniors owning life insurance are benefiting – as we have returned over $357 million to seniors for life insurance they no longer wanted, needed or could afford – this compares to the $22 million in surrender value offered by insurance carriers. We know investors are seeking positive yields derived from our non-correlated assets – as we raised over $48 million this quarter and worldwide interest rates continued to decline.”
In other GWG news, the company recently announced new interest rates for its L bond offering, as reported by The DI Wire.
For more GWG related news, please visit their directory page.
