"Part A"
|
|||||||||||||||||
|
|
||||||||||||||||
| LION LIFE FINANCIAL PROJECTIONS | |||||||||||||||||
| First Year | Second year | Third Year | |||||||||||||||
| Projected Revenue and Expenses (First 12 month period) | |||||||||||||||||
| Revenue | |||||||||||||||||
| Burial /Modified Whole Life | 11,154,000.00 | 22,308,000.00 | 44,616,000.00 | ||||||||||||||
| Annual Renewable Term | 12,300,000.00 | 24,600,000.00 | 49,200,000.00 | ||||||||||||||
| Whole Life | 37,800,000.00 | 75,600,000.00 | 151,200,000.00 | ||||||||||||||
| Premium Income (new) | 0.00 | 0.00 | 0.00 | ||||||||||||||
| Retention Premium Income | 0.00 | 58,750,000.00 | 168,450,000.00 | ||||||||||||||
| Total Premium Income | 61,254,000.00 | 181,258,000.00 | 413,466,000.00 | ||||||||||||||
| Expenses | |||||||||||||||||
| Premium Tax @ 1.0%- GFSC | 612,500.00 | 1,225,000.00 | 4,134,660.00 | ||||||||||||||
| GFSC | 0.00 | 0.00 | 0.00 | ||||||||||||||
| Reserves (Statutory Accounting) (3) | 0.00 | 0.00 | 0.00 | ||||||||||||||
| Claims | 5,200,000.00 | 11,490,000.00 | 16,327,000.00 | ||||||||||||||
| Promotion (Advertising / Marketing) | 250,000.00 | 500,000.00 | 500,000.00 | ||||||||||||||
| Travel | 50,000.00 | 50,000.00 | 50,000.00 | ||||||||||||||
| Administration system Setup and Maintenance | 25,000.00 | 35,000.00 | 75,000.00 | ||||||||||||||
| Executive Salaries | 492,500.00 | 985,000.00 | 985,000.00 | ||||||||||||||
| Marketing Expenses | 950,000.00 | 1,500,000.00 | 2,500,000.00 | ||||||||||||||
| Procedures Development & Training | 50,000.00 | 50,000.00 | 75,000.00 | ||||||||||||||
| Office Salaries (Programmers & Secty-Ex.Asst.) | 740,000.00 | 790,000.00 | 850,000.00 | ||||||||||||||
| Printing and Supplies | 50,000.00 | 50,000.00 | 50,000.00 | ||||||||||||||
| Rent and Utilities | 90,000.00 | 110,000.00 | 140,000.00 | ||||||||||||||
| Actuarial Financial Reporting [LC-P] | 100,000.00 | 150,000.00 | 225,000.00 | ||||||||||||||
| Experience Analysis [LC-P] | 50,000.00 | 75,000.00 | 125,000.00 | ||||||||||||||
| Furniture, Computers and Equipment | 40,000.00 | 60,000.00 | 75,000.00 | ||||||||||||||
| Depreciation | 25,000.00 | 50,000.00 | 75,000.00 | ||||||||||||||
| Licensing Fees (Annual) | 7,500.00 | 7,500.00 | 7,500.00 | ||||||||||||||
| Telecommunications | 35,000.00 | 45,000.00 | 50,000.00 | ||||||||||||||
| Legal/Licensing Fees [Reporting] | 75,000.00 | 125,000.00 | 150,000.00 | ||||||||||||||
| Accounting [Deloitte-Touche] | 155,000.00 | 250,000.00 | 250,000.00 | ||||||||||||||
| Computer Costs - System in Global | 40,000.00 | 60,000.00 | 100,000.00 | ||||||||||||||
| Audit [Deloitte-Touche] | 50,000.00 | 75,000.00 | 100,000.00 | ||||||||||||||
| Website Maintenance | 20,000.00 | 40,000.00 | 50,000.00 | ||||||||||||||
| Insurance / Banking | 40,000.00 | 65,000.00 | 85,000.00 | ||||||||||||||
| Investment Banking / Expenses | 300,000.00 | 50,000.00 | 0.00 | ||||||||||||||
| Postage /Fed-Ex /DHL | 10,000.00 | 15,000.00 | 25,000.00 | ||||||||||||||
| Computer Backup [Global] | 25,000.00 | 50,000.00 | 75,000.00 | ||||||||||||||
| Reinsurance [Quota share 40%] | 2,041,666.00 | 4,085,000.00 | 8,170,000.00 | ||||||||||||||
| Miscellane | ous & Premium Financing | 1,667,000.00 | 3,750,000.00 | 6,000,000.00 | |||||||||||||
| Total Operating Expense | 13,191,166.00 | 25,737,500.00 | 41,249,160.00 | ||||||||||||||
| Net Premium Gross Profit | 48,062,834.00 | 155,520,500.00 | 372,216,840.00 | ||||||||||||||
| Retained Earnings [(90%) to Bank of Butterfield] (1) | 43,256,550.60 | 139,968,450.00 | 334,995,156.00 | ||||||||||||||
| Net Profit | 4,806,283.40 | 15,552,050.00 | 37,221,684.00 | ||||||||||||||
| Extraordinary Bonus | 0.00 | 5,000,000.00 | 5,000,000.00 | ||||||||||||||
| Reserve Income Gain/ Bank of Butterfield (2) | 48,062,834.00 | 150,520,500.00 | 367,216,840.00 | ||||||||||||||
| Net Profit Available for Tax Service | 52,869,117.40 | 171,072,550.00 | 409,438,524.00 | ||||||||||||||
| =========== | =========== | ============ | |||||||||||||||
| ( 1) [ Under Statutory Accounting we can expense out | $ 42,356,550 of Net Profit to our Reserve Account in | ||||||||||||||||
| our custodian Bank, Bank of Butterfield in Guernsey,Channel Islands, for Policy Reserves] | |||||||||||||||||
| ( 2) [ Lionlife Reserve Account Funds Deposited at Bank of Butterfield (cash & Cash Equivelants) yielding conservative 4 % average ] | |||||||||||||||||
| ( 3) [ Through the management agreement and approval of the Guernsey Financial Services Commission between Orient Holding, Ltd. & | |||||||||||||||||
| Lionlife, Ltd. Orient Holding can draw from Custodial Funds to cover operating extraordinary expenses, i.e. Dividends, Bonuses, Etc.] | |||||||||||||||||
| * Policy Fees to be calculated and added at the end of the year | |||||||||||||||||
