Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 5

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 5
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 portfolios include:

    ●
    the
    insured is 75 years old or older;

    ●
    all
    NIBs relate to U.S. Universal Life Insurance policies;

    ●
    all
    underlying insurance policies have qualified for financing that will cover at least four years of premiums;

    ●
    each
    policy must first be reviewed by the legal due diligence team of the lender providing financing for the acquisition and servicing
    of the life insurance policies, second by the MRI company’s due diligence team and then finally approved by our due diligence
    processes;

    ●
    all
    policies must qualify for MRI; and

    ●
    the
    projected proceeds payable on each life insurance policy upon the death of the underlying insured are projected to exceed the costs
    to service the life insurance policies, amounts due to creditors secured by such life insurance policy, such as the Holders’
    Lender or the MRI provider, other costs and fees incurred by the Holder and the percentage of the remaining insurance benefit retained
    by the Holder 

Competition

We
encounter significant competition in the life settlements industry generally from numerous companies, including hedge funds, investment
banks, secured lenders, specialty life insurance finance companies and life insurance companies themselves who purchase life settlements.
Many of these competitors have greater financial and other resources than we do and may have a significantly lower cost of funds because
they have greater access to insured deposits or the capital markets. Moreover, some of these competitors have significant cash reserves
and can better fund shortfalls in collections that might have a more pronounced impact on companies such as ours. They also have greater
market share. For example, Berkshire Hathaway purchased a portfolio of $300 million (face value) in life insurance policies in 2013.
According to The Deal Pipeline, total life settlement transactions grew to $2.57 billion (face value) in 2013. In 2014 transaction
volumes were reported higher by market participants in all major segments of the industry and Conning & Co. forecast an average annual
gross market potential for life settlements of $180 billion from 2014-2023, with an average volume of approximately $3 billion per year
in life settlement transactions.

A
report from the AAP Life Settlement Market Update indicated that internal rates of return for life settlement transactions conducted
in 2013 were in the high teens, an attractive return at a time when fixed income and other hedge positions were delivering minimal rates
of