GWG Holdings, Inc. (NASDAQ:GWGH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 21, 2019 • 04:30 pm ET

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GWG Holdings, Inc. (NASDAQ:GWGH) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Dan Callahan

Thank you, Tim. We've been getting some questions and we have a few that we're going to get to. Again, if we don't get -- we don't get to your question, we will be responding by email or a phone call, so feel free to send us your questions, we'll get back to you.

Our first question is one that we have been getting for a little bit is the purchase of insurance policies. Is GWG going to continue to purchase insurance policies?

Executive
Murray T. Holland

Dan, the answer to that is that we will purchase policies that can provide the yields equivalent to the yield we expect out of BEN investments.

Operator
Dan Callahan

We have another question from William Gibson, who is an analyst who covers us, who asks for the gross yield on Beneficient alternative assets?

Executive
Timothy L. Evans

That will range between 14% and 17%.

Operator
Dan Callahan

Another question from Bill is the timing of consolidation, has that been worked out yet?

Executive
Murray T. Holland

Well, there is a, -- the transactions between BEN and GWG are -- they're pretty significant transactions that we've undertaken to date and we continue to work on further consolidation to companies. We spent a considerable amount of time over the last quarter preparing the special committee for a number of proposals that they're considering at this time and we need to respect the process and the considerable work the company is undertaking. So we can't comment on the specific items at this time, until we're -- until they're completed. But we are excited about the prospects and look forward to announcing those soon.

Operator
Dan Callahan

Another question we have is the types of investments you will be investing L Bonds proceeds with going forward?

Executive
Murray T. Holland

Okay. Those are investments in the Beneficient, and as an earlier slide that I walked through, a peer talked about the type of investments, BEN will be providing liquidity for and those are professionally managed funds that are the -- right now the focus of a lot of the major financial institutions in this country including pension funds, endowments and foundations that invest in these.

Operator
Dan Callahan

We have a question from David Simon, who asks about the spin-off of the Insurtech Business. Will GWG benefit from the successes of the Insurtech Business?

Executive
Murray T. Holland

Yes, we will. The spin-off is done for a number of reasons, but we will have -- today, we own 100% of the equity in that subsidiary and we will continue to own essentially all of the economics of the company even after the spin-off.

Operator
Dan Callahan

We have a couple of questions about life insurance policies. Some -- give us some explanation for why fewer policies have been purchased? What are the dynamics of that?

Executive
Murray T. Holland

Okay. As we have witnessed at GWG over the last five years, there has been a significant decline in yields on these policies. And the yield is critical to us, because we're obviously financing with debt instruments that have the yield of their own. And while that margin has been shrinking, we've had to be -- we've had