Coventry First Increases Offer to 21st Services to US$10 Million for Independent Verification That Its Life Expectancy Projections Are Accurate
FORT WASHINGTON, Pennsylvania, March 10 /PRNewswire/ -- Coventry First today announced that it has increased its offer to 21st Services, a provider of medical underwriting services, from US$5 million to US$10 million if 21st Services can provide independent verification that its underwriting over the last six years was accurate. 21st Services had asserted in response to a lawsuit filed by Coventry that its life expectancy estimates are statistically accurate, are "superior" to estimates provided by their competitors, and that 21st Services is the "gold standard" in the life settlement industry.
In February, Coventry made an initial offer to pay 21st Services US$5 million if it could obtain a certification from either of the nation's two leading actuarial firms, Milliman USA or Tillinghast, stating that for all of the insured individuals reviewed by 21st Services during the period from March 1, 1998 through December 31, 2004, the ratio of actual deaths to expected deaths was at least 80 percent. Today, Coventry has doubled its prior offer in an effort to encourage 21st Services to step up and demonstrate it is, in fact, the "gold standard."
In November 2004, Coventry filed suit against 21st Services in federal district court alleging that 21st Services was providing life expectancy projections that routinely and consistently understate the true life expectancy of the insured, in violation of Pennsylvania's Settlement Act. Alan H. Buerger, CEO of Coventry, said at that time, "We believe that the investors who are relying on 21st Services' projections will suffer significant losses, which will threaten the long-term viability of the secondary market for life insurance."
"If 21st is unable to provide the certification," Mr. Buerger said, "we sincerely hope they will correct the problem, so investors have more accurate projections of future performance."
About Coventry First
Coventry First (http://www.coventryfirst.com) bridges insurance and capital markets to create groundbreaking products for the financial services industry. The company is the leader in the secondary market for life insurance and pioneered the resulting life settlement industry. Fueled by bold ideas, a deep understanding of life insurance, and impeccable standards, Coventry First continues to lead the market by opening new opportunities for consumers and the financial professionals who serve them. Based in Fort Washington, PA, Coventry First has received Standard & Poor's highest Servicer ranking, the only firm in the secondary market for life insurance to be ranked, and was named the nation's 10th fastest-growing privately held company in the annual INC. 500 listing.
CONTACT: Kirstin Crouthamel, Coventry First, +1-877-836-8300, firstname.lastname@example.org.
Web site: http://www.coventryfirst.com
SOURCE Coventry First
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