LIFE SETTLEMENT POLICIES

3 Months Ended

Mar. 31, 2026

Investments, All Other Investments [Abstract]

As of March 31, 2026, the Company held 659 life settlement policies, of which 656 were accounted for using the fair value method and 3 were accounted for using the investment method (cost, plus premiums paid). Aggregate face value of policies held at fair value was $727,668,136 as of March 31, 2026, with a corresponding fair value of $392,770,863. The aggregate face value of policies accounted for using the investment method was $1,625,000 as of March 31, 2026, with a corresponding carrying value of $931,353. Differences between the face value and the net death benefit of certain policies is due to return of premium policies offset by loans on policies.

As of December 31, 2025, the Company held 804 life settlement policies, of which 801 were accounted for under the fair value method and 3 were accounted for using the investment method (cost, plus premiums paid). The aggregate face value of policies held at fair value was $1,063,747,674 as of December 31, 2025, with a corresponding fair value of $468,857,929. The aggregate face value of policies accounted for using the investment method was $1,625,000 as of December 31, 2025, with a corresponding carrying value of $918,305.

At March 31, 2026, the Company did not have any contractual restrictions on its ability to sell policies, including those held as collateral for the issuance of long-term debt. Refer to Note 14, Long-Term Debt for further details.

Life expectancy reflects the probable number of years remaining in the life of a class of persons determined statistically, affected by such factors as heredity, physical condition, nutrition, and occupation.

There were no significant changes in the Company’s expectation of the timing of the realization of revenues related to life settlement policies. Refer to Note 13, Fair Value Measurements for significant changes to the amounts disclosed related to life settlement policies.

Policies Carried at Fair Value:

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of March 31, 2026:


Remaining Life Expectancy (Years)	Policies	Face Value		Net Death Benefit		Fair Value
0-1	60	$	46,982,796	$	44,994,259	$	37,731,191
1-2	118	133,401,574		132,000,341		90,727,510
2-3	129	173,112,796		180,300,272		109,728,918
3-4	93	101,302,190		99,159,681		50,559,677
4-5	85	82,922,765		79,927,357		39,457,540
Thereafter	171	189,946,015		187,410,340		64,566,027
Total	656	$	727,668,136	$	723,792,250	$	392,770,863

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of December 31, 2025:


Remaining Life Expectancy (Years)	Policies	Face Value		Net Death Benefit		Fair Value
0-1	56	$	37,289,219	$	38,364,635	$	31,591,831
1-2	107	145,413,973		136,961,406		95,037,912
2-3	172	220,587,453		233,422,730		138,986,632
3-4	103	102,158,681		101,592,187		47,674,052
4-5	104	96,790,034		90,018,094		38,562,604
Thereafter	259	461,508,314		458,781,779		117,004,898
Total	801	$	1,063,747,674	$	1,059,140,831	$	468,857,929

Policies Accounted for Using the Investment Method:

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of March 31, 2026:


Remaining Life Expectancy (Years)	Policies	Face Value		Net Death Benefit		Carrying Value




4-5	1	$	750,000	$	750,000	$	455,425
Thereafter	2	875,000		898,307		475,928
	3	$	1,625,000	$	1,648,307	$	931,353

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of December 31, 2025:


Remaining Life Expectancy (Years)	Policies	Face Value		Net Death Benefit		Carrying Value




4-5	1	$	750,000	$	750,000	$	444,987
Thereafter	2	875,000		898,307		473,318
Total	3	$	1,625,000	$	1,648,307	$	918,305

Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of March 31, 2026, are as follows:


2026 remaining	$	39,790
2027	53,214
2028	11,946



Total	$	104,950

Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of December 31, 2025, are as follows:


2026	$	52,837
2027	53,214
2028	11,946



Total	$	117,997

The Company is required to pay premiums to keep its portion of life insurance policies in force. The estimated total future premium payments could increase or decrease significantly to the extent that actual mortalities of insureds differ from the estimated life expectancies.

For policies accounted for under the investment method, the Company has not been made aware of information causing a material change to assumptions relating to the timing of realization of life insurance settlement proceeds that would impact the carrying value of policies.

- Definition

The entire disclosure for life settlement contracts including the accounting policy for life settlement contracts and the classification of cash receipts and cash disbursements in the statement of cash flows and, as applicable, for (1) life settlement contracts accounted for under the investment method based on the remaining life expectancy for each of the first five succeeding years from the date of the statement of financial position and thereafter, as well as in the aggregate: (a) the number of life settlement contracts, (b) the carrying value of the life settlement contracts, and (c) the face value (death benefits) of the life insurance policies underlying the contracts, (d) the life insurance premiums anticipated to be paid for each of the five succeeding fiscal years to keep the life settlement contracts in force as of the date of the most recent statement of financial position presented, (e) the nature of the information that causes the Entity to change its expectations on the timing of the realization of proceeds from the investments in life settlement contracts and the related effect on the timing of the realization of proceeds from the life settlement contracts and for (2) life settlement contracts accounted for under the fair value method, disclosure would include, based on remaining life expectancy for each of the first five succeeding years from the date of the statement of financial position and thereafter, as well as in the aggregate: (a) the number of life settlement contracts, (b) the carrying value of the life settlement contracts, (c) the face value (death benefits) of the life insurance policies underlying the contracts, (d) the reasons for changes in the Entity's expectation of the timing of the realization of the investments in life settlement contracts, and (e) (i) the gains or losses recognized during the period on investments sold during the period and (ii) the unrealized gains or losses recognized during the period on investments that are still held at the date of the statement of financial position.

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