BUSINESS OVERVIEW Second Quarter JGWPT Holdings Inc.

Transcription

1 BUSINESS OVERVIEW Secnd Quarter JGWPT Hldings Inc. 1

2 STATEMENT OF DISCLOSURE This presentatin cntains frward-lking statements within the meaning f U.S. federal securities laws. Frwardlking statements are nt histrical facts, and are based upn management s current expectatins, beliefs and prjectins, many f which, by their nature, are inherently uncertain. Such expectatins, beliefs and prjectins are expressed in gd faith. Hwever, there can be n assurance that management s expectatins, beliefs and prjectins will be achieved and actual results may differ materially frm what is expressed in r indicated by the frward-lking statements. Frward-lking statements are subject t risks and uncertainties that culd cause actual perfrmance r results t differ materially frm thse expressed in the frward-lking statements, including risks detailed in JGWPT Hldings, Inc. s (the Cmpany ) SEC filings. Frward-lking statements speak nly as f the date the statements are made. The Cmpany assumes n bligatin t update frward-lking statements t reflect actual results, subsequent events r circumstances, changes in assumptins r changes in ther factrs affecting frward-lking infrmatin except t the extent required by applicable securities laws. If the Cmpany des update ne r mre frward-lking statements, n inference shuld be drawn that the Cmpany will make additinal updates with respect theret r with respect t ther frward-lking statements JGWPT Hldings Inc. 2 2

3 TABLE OF CONTENTS I. Cmpany Overview II. Marketing & Branding III. Structured Settlements & Annuities IV. Lttery Funding V. Pre-Settlement Funding VI. Financing Platfrm VII. Histrical Cllateral Perfrmance & Securitizatin Overview VIII. Legal Overview Appendix A: Management Bis Appendix B: Cntact 2014 JGWPT Hldings Inc. 3 3

4 I. COMPANY OVERVIEW 2014 JGWPT Hldings Inc. 4 4

5 COMPANY OVERVIEW The JGWPT Cmpanies ( JGWPT ) are cmprised f the J.G. Wentwrth and the Peachtree Financial Slutins family f cmpanies. Bth brands are innvatrs, market leaders and established players in their business segment In Nvember 2013, JGWPT Hldings Inc. went public n the NYSE (Ticker JGW ) and became the managing member f JGWPT Hldings, LLC JGWPT, thrugh its subsidiaries, is the natin s leading purchaser and servicer f Structured Settlement and Annuity payment streams Emplys apprximately 400 peple with peratins in Radnr, Pennsylvania First t securitize Structured Settlement payment streams in 1997 JGWPT and it s subsidiaries have purchased ver 66,000 receivables since 2002 with aggregate payment streams f ver $5.9bn with less than 0.08% f aggregate lsses The JGWPT family f cmpanies has in-huse marketing, underwriting and servicing Invested apprximately $633 millin in marketing since JGWPT Hldings Inc. 5 5

6 COMPANY OVERVIEW JGWPT is a direct-t-cnsumer cmpany that prvides liquidity t custmers by purchasing structured settlement, fixed annuity and lttery payment streams and cnducts pre-settlement transactins Business mdel is based n the simple premise that bligatins, backed by strng investment-grade insurance cmpanies, can be purchased at a discunt t deliver strng ecnmics while als prviding cmpelling benefits t the cnsumer The cmpany markets under tw distinct leading brands: JG Wentwrth ( JGW ) and Peachtree In July 2011, JGWPT Hldings, LLC was frmed t hld bth JGW and Peachtree, creating significant strategic value as the cmpanies maintained highly cmplementary prduct fferings with minimal custmer verlap and the ability t realize significant synergies BRAND DESCRIPTION Offerings Structured Settlements, Annuities Target Audience Cnsumers Psitining Price Leader with Efficient, Curteus Service Offerings Structured Settlements, Annuities, Pre-Settlement Fundings, and Ltteries Target Audience Cnsumers, Attrneys, Financial Prfessinals Psitining Friendly, High Tuch Service 2014 JGWPT Hldings Inc. 6 6

7 ESTABLISHED BRANDS ACROSS PRODUCT LINES Ultimate Payr / Cunterparty Structured Settlements Annuities Ltteries Insurance cmpany Insurance cmpany State lttery funds / Insurance cmpany Pre-Settlement Funding Insurance cmpany / self-insured crprate defendant Brands Years f Experience % f Revenue (Year t date) Financial Infrmatin as f Dec 31, A leader in all f ur prduct lines 2014 JGWPT Hldings Inc. 7

8 LEADING MARKET POSITION Market Landscape JGWPT s Leading Psitin JGWPT pssesses the largest market share f any structured settlement player by a significant margin Cmpetitrs JGWPT Leading psitin ffers scale advantages Operating efficiency Regular access t securitizatin market prvides cst f funds advantage relative t cmpetitrs Surce: Represents that prtin f all cases filed that were visible t management via Westlaw thrughut the cuntry. Percentages in the graph reflect ttal activity between January December JGWPT Hldings Inc. 8

9 LEADERSHIP TEAM Significant direct marketing and capital markets expertise Extensive knwledge f the legal and regulatry intricacies f the purchasing prcess David Miller CEO Randi Sellari President & COO Stefan Sla EVP & Chief Investment Officer Jhn Schwab EVP & Chief Financial Officer Stephen Kirkwd EVP & General Cunsel Sean O Reilly Chief Marketing Officer Michael Alupis Vice President, Human Resurces Name Title Years with the Cmpany and Predecessrs Years f Experience David Miller Chief Executive Officer 5 33 Randi Sellari President & Chief Operating Officer Stefan Sla Chief Investment Officer 5 19 Jhn Schwab Chief Financial Officer 1 24 Stephen Kirkwd General Cunsel Sean O'Reilly Chief Marketing Officer 1 21 Michael Alupis Vice President - Human Resurces JGWPT Hldings Inc. 9 9

10 II. MARKETING & BRANDING 2014 JGWPT Hldings Inc

11 MARKETING OVERVIEW JGWPT perates in the markets it serves with tw distinct brands, JG Wentwrth and Peachtree Allws the cmpany t target separate sub-segments f its addressable market simultaneusly Differentiated strategy results in minimal custmer verlap Over $633 millin in spend n televisin, internet, direct mail and scial media have develped icnic brands BRAND POSITIONING PUBLIC FACE / MASCOT Price leader with curteus, efficient service Prject image f being a reliable, secure and financially strng institutin that delivers gd service and great value Friendly, high-tuch service Develp strng persnal bnd between custmer and purchasing team Persnal relatinship is the crnerstne f the experience 2014 JGWPT Hldings Inc. 11

12 SOPHISTICATED DIRECT MARKETING PROGRAMS Televisin Online / Mbile Direct Mail I have a structured settlement, and I need cash nw. 877-CASH-NOW We re Peachtree Peple 2014 JGWPT Hldings Inc. 12

13 EFFECTIVE THROUGH DIVERSE MARKETING CHANNELS Televisin Online Additinal Channels Bth JG Wentwrth and Peachtree have develped icnic TV brands Cmbined, generate ver 130 millin impressins per week natinwide Over 80% f the target audience sees JGW/Peachtree ads 5X per week The Cmpany has a well-established prcess t design, develp, write and prduce winning direct respnse TV campaigns Weekly media ptimizatin ensures delivery f qualified leads at the mst efficient cst JGWPT wns significant real estate in the largest nline search engines fr many key terms, including structured settlement JG Wentwrth has 98% share f vice fr Brand and Structured Settlement categry searches Strng results in bth paid search and rganic leads due t search engine marketing and ptimizatin expertise Scial Media - New and ever-grwing media channel Facebk: 39,150 cmbined fans with great pprtunities fr grwth and cntent publishing Twitter: 29,000 cmbined fllwers YuTube: Apprximately 2,000,000 cmbined YuTube vide views f cmmercials and pardies. Develping additinal nline-nly cntent Smartphnes - Facilitating custmer engagement and dcument transfer JG Wentwrth and Peachtree launched mbile applicatins fr the iphne and Drid phnes App serves as a dcument transfer vehicle (alternative t faxing), remving radblcks/barriers t cmpletin I have a structured settlement and I need cash nw. Direct Mail JG Wentwrth: Fcused n scale, ease-f-use, speed f funding Key initiatives CRM trigger mailers and Cash Nw Peachtree: Service-fcused brand Key initiatives include Dream Cash Over $633 millin in marketing spend has created brand recgnitin that is nearly impssible t replicate J.G. Wentwrth and Peachtree maintain leading market psitins acrss all prduct lines 2014 JGWPT Hldings Inc. 13

14 III. STRUCTURED SETTLEMENTS & ANNUITIES 2014 JGWPT Hldings Inc

15 STRUCTURED SETTLEMENTS OVERVIEW Initial Structured Settlement Creatin A structured settlement is a cntractual agreement t settle a trt claim invlving physical injury, illness, r wrkers cmpensatin whereby a claimant is cmpensated fr damages thrugh a series f payments ver time Typically arises frm an ut-f-curt negtiated settlement T fund the settlement bligatins the defendant, typically an insurance cmpany, purchases a single premium annuity frm a life insurance cmpany The full amunt f each peridic payment is excludable frm the recipient s incme Increases aggregate dllar payments t the claimant while minimizing upfrnt capital cmmitment frm the insurance cmpany Subsequent Sale by Structured Settlement Hlder JGWPT Regulatry Overview All sales f structured settlement payment streams are need-based and prvide liquidity when circumstances prmpt re-assessment f financial needs Sales f structured settlement payments make ecnmic sense fr many custmers prviding a lwer rate cmpared t alternatives Credit cards n average charged between 15%-25%, cmpared t 8% 14% discunt rates fr structured settlements Sale f an asset prvides liquidity withut creating a repayment bligatin Claimant Out f curt negtiatin f amunt and terms f cmpensatin fr damages 1 Defendant s Insurance Prvider ILLUSTRATIVE USE OF PROCEEDS 1 Debt Repayment / Pay Bills 36% Husing-Related 31% Transprtatin 7% Educatin 6% Miscellaneus 6% Health Care 5% 3 Cmpensatin paid t claimant thrugh annuity Annuity Prvider 2 Purchase f annuity t defease bligatin t claimant Majr Purchase 4% Child Care 3% Business-Related 3% 1) Surce: Based n a randm sample f 584 JG Wentwrth transactins JGWPT Hldings Inc

16 DESCRIPTION ILLUSTRATIVE TRANSACTION TIMELINE Structured settlement payment stream purchasing Marketing Purchasing Underwriting Curt Apprval Funding Prtfli Servicing Direct-t- Cnsumer TV Internet Print Generates incming calls t prduct grups Prprietary databases utilized t pursue leads Initial screening f pprtunity Stringent screening guidelines Relatinship management Cmplete paperwrk Becme pint f cntact Ensure payments are unencumbered and available fr purchase Ecnmic review Separate frm purchasing team Prcessing and executin f dcumentatin Meet legal requirements as needed Subject t individual state transfer statutes Each transfer apprved by a curt and federal verlays Express curt finding that transfer is in the best interest f custmer and take int accunt the welfare and supprt f dependents Draw frm financing facilities t fund deals Subsequently, permanently finance thrugh securitizatins apprximately three times per year Opprtunities t finance thrugh private placements and frward flw arrangements Service all prtflis (such as prir securitizatins and ther financings) Administer and cllect payments Day 1 Day 10 Days Highly efficient structured settlement payment stream purchasing prcess 2014 JGWPT Hldings Inc. 16

17 PURCHASING Leads are surced frm multiple channels: Inbund calls and inquiries frm TV, internet and ther marketing campaigns Prprietary Custmer Relatinship Management platfrm (WAIDE) cntaining internal database f existing claimants Accunt executives qualify each lead t: Determine the type f payment stream Develp a relatinship with the individual in rder t understand their circumstances Define the cnsumer need and cnstruct a transactin that meets their needs Cmmitment review Purchase adheres t the current pricing mdel Review f initial annuity and settlement dcumentatin t verify: Whether the claimant is entitled t the payments Identity f the annuity issuer and annuity bligr Cmpliance with statutry requirements Purchase cntract package sent t claimant via FedEx, r facsimile 2014 JGWPT Hldings Inc

18 UNDERWRITING Executed purchase cntract received via fax, , FedEx, r prprietary App (iphne r Andrid) Initial review Fraud review Purchase cntract and all applicable frms returned and executed prperly Settlement and annuity dcumentatin received Cnfirmatin that claimant is entitled t payments, payments t be sld are unencumbered, and annuity issuer and annuity bligr are crrect Verificatin that the claimant has waived r received independent prfessinal representatin (eight states require representatin, all ther states allw waiver f this requirement) Perfrm varius searches t verify ptential fraud UCC lien search Credit search fr bankruptcy and child supprt arrearages Natinal Assciatin f Settlement Purchasers ( NASP ) fraud database t verify there are n ptential cnflicts with cmpetitrs Cntract package sent t utside cunsel t begin curt apprval prcess 2014 JGWPT Hldings Inc

19 COURT APPROVAL Fr JGWPT t purchase a structured settlement payment frm a custmer, state transfer statutes generally require the curt t find: Transactin is in the best interests f the claimant, taking int accunt the welfare f his r her dependents Transactin des nt cntravene federal r state law Claimant executes dcumentatin f the sale, which is cnsidered in the curt s review f the sale Upn curt apprval, the cmpany prvides the annuity prvider with a cpy f the executed curt rder and letter directing payments t be sent t an established lckbx in the name f the cmpany r ne f its subsidiaries Ntificatin perid allws annuity prviders t review transfer applicatin 2014 JGWPT Hldings Inc

20 PORTFOLIO SERVICING As master servicer r sub-servicer, the cmpany is respnsible fr file verificatin, payment prcessing and delinquency reslutin Delinquencies are typically identified within three business days past due The cmpany maintains relatinships with all annuity prviders fr the settlement payments it wns, thereby facilitating the reslutin f administrative delays Of the $5.9 billin f curt rdered payments purchased since 2002, the cumulative lss rate is less than 0.08% Back-up servicing prvided by Prtfli Financial Servicing Cmpany Ht site back up (daily cash recnciliatin) All payments made t a secured lck bx Custdian fr cllateral 2014 JGWPT Hldings Inc

21 ANNUITIES OVERVIEW Fixed annuities are peridic payments made by insurance cmpanies t the cntract beneficiary Similar t structured settlements, JGWPT purchases these peridic payments directly frm individuals Significant primary market fr fixed incme annuities Multi-trillin dllar market, with $240 billin in annuities issued in 2011 In a survey, 27% f annuity wners were cncerned they may be unable t sell their annuity if they want the mney fr smething else Purchasing and Underwriting prcess is substantially similar t structured settlements Des nt require curt apprval and thus typical transactins can be cmpleted within 3-4 weeks 2014 JGWPT Hldings Inc

22 IV. LOTTERY FUNDING 2014 JGWPT Hldings Inc

23 LOTTERIES OVERVIEW Similar t structured settlements, all purchases are made pursuant t curt rders, directing the state lttery cmmissin t make payments directly t the purchaser 15 year histry f buying and selling lttery prize payments JGWPT typically purchases nly a prtin f the ttal lttery payment streams The cmpany has recently begun including ltteries in securitizatins In additin, JGWPT maintains clse relatinship with small grup f financing surces that fund a majrity f the cmpany s lttery purchases and are attracted t the high-quality nature f the assets Cumulative histrical curt rdered lsses f < 0.04% Weighted average life f 7+ years 24 states permit lttery transfers 2014 JGWPT Hldings Inc. 23

24 V. PRE-SETTLEMENT FUNDING 2014 JGWPT Hldings Inc

25 PRE-SETTLEMENT FUNDING OVERVIEW Persnal injury victims ften need emergency funds t cver living and medical expenses Average persnal injury claim takes apprximately tw years t settle Many recipients are unemplyed and / r have limited access t capital Resulting liquidity crisis can ften prejudice the plaintiff Plaintiff may experience a cash shrtfall and thus feels cmpelled t settle fr less than deserved Plaintiff s lawyer is ften under pressure t settle quickly and may lse ut n a larger fee By cnducting a mdest transactin relating t the prceeds f the pending claim, JGWPT remves the pressure n bth the plaintiff and their lawyer Generally, transactin is less than 20% f the ttal case value The transactin is nt a lan because there is n bligatin t repay if plaintiff lses case. It des nt carry the same usury / regulatry restrictins f a lan Peachtree has been cnducting pre-settlement transactins since January 2005 $216 millin n 20,711 cases Underwriting is perfrmed by experienced in-huse attrneys and paralegals JGWPT currently perates in the 26 states where the it s cnfident in the regulatry regime and where lending licenses are nt required Expected t represent a majr grwth driver fr the cmpany ging frward, after regulatry framewrk is established 2014 JGWPT Hldings Inc. 25

26 VI. FINANCING PLATFORM 2014 JGWPT Hldings Inc

27 FINANCING PLATFORM The JGWPT Cmpanies diversified funding platfrm ptimizes funding at every stage f the business prcess Alternative funding surces bth in nature f financing and type f institutin Funding surces enable access t the private r 144A markets t achieve best executin The cmpany has established itself as a regular issuer f structured settlement, annuity and lttery ABS and expects t cntinue t build its term issuance platfrm in the future The JGWPT Cmpanies lk t securitizatin as a surce f lnger term financing and an pprtunity t diversify its surces f funding and investr base Surces f financing include: Internal funding Bank warehuse facilities Insurance cmpany warehuse facilities Financial institutin term facilities/private placements Asset based lans frm financial institutins Since Nvember 2009, JGWPT subsidiaries executed revlving and term facilities, securitizatins, credit lines and private placements with diverse cunterparties including institutinal investrs, insurance cmpanies, banks, and investment banks 2014 JGWPT Hldings Inc

28 DEVELOPMENT OF FUNDING & SECURITIZATION PLATFORM All aspects f the Cmpany s funding mdel have been strengthened and diversified since the financial crisis Current financing platfrm has capacity t fund purchases fr apprximately 18 t 24 mnths withut access t securitizatins r ther permanent financing Warehuse Facilities Securitizatins $250 millin f availability Single lender Variable advance rate Mark-t-market 365 day term Guaranteed Structured Settlements Pre-2009 Current Average f 4 investrs per securitizatin N pre-funding cmpnent Utilized MBIA wrap $750 millin f ttal capacity Five lenders Fixed advance rate N mark-t-market (n expsure t margin calls) All facilities have at least a 2 year terms and n less than 18 mnths amrtizatin Cntinued grwth in demand with apprx. 50 unique investrs since 2010 Up t 45% pre-funding cmpnent (extending perid between securitizatins) AAA rated with n wrap Even during the financing crisis, the lngest perid between permanent financings was 10 mnths Securitizatin in December 2008 Private placement in Octber 2009 Alternative Mnetizatin Optins Asset Class Track Recrd Nne Strng, but largely untested Twelve private placements executed since 2009 in the structured settlement asset class Term facilities Flawless perfrmance thrughut crisis with n missed payments fr any f the 38 utstanding securitizatins Increases likelihd that market will remain pen ging frward 2014 JGWPT Hldings Inc. 28

29 CREDIT ENHANCEMENT OVERVIEW JGWPT transactins are all similar in structure The credit enhancement fr the JGWPT transactins cnsists f vercllateralizatin, a reserve accunt and, in the case f the Class A Ntes, subrdinatin f the Class B Ntes Subrdinatin: The Class A Ntes have the supprt f the Class B Ntes in an amunt f apprximately 8.75% Class A 85.25% Overcllateralizatin: The Overcllateralizatin will initially be apprximately 6.00% Nn-Declining Reserve Accunt: At clsing, an initial depsit f 1.00% f the Aggregate Discunted Receivables Balance f the Receivables is made t the Reserve Accunt Retained; fully lcked ut t principal Class B 8.75% Certificate (OC) 6.00% Fully funded, nn-declining reserve accunt Reserve Accunt 1.00% 2014 JGWPT Hldings Inc. 29

30 RECENT SECURITIZATION EXECUTION JGWPT s cllateral pl fr the last five securitizatins exhibited cnsistent characteristics Clse Date 2/18/ /18/13 07/30/13 03/20/13 11/19/12 07/25/12 % SS 93.97% 96.88% 89.80% 93.00% 95.63% 95.47% % Annuities 5.51% 0.93% 6.30% 4.80% 4.37% 4.53% % Ltteries 0.51% 2.19% 4.00% 2.20% Ttal 100.0% % % % % % Average Cntract Balance (PV) 1 $ 53,478 $58,111 $50,156 $50,813 $46,178 $50,838 % Curt Ordered Transfers % % % % % % Rating f Annuity Prviders 3 A- r Better 88.43% 93.48% 89.31% 94.95% 94.86% 95.29% Investment Grade r better % 98.60% 96.30% 96.40% 95.02% 95.66% % Tp 5 Annuity Prvider 4 43% 48.83% 45.60% 42.60% 44.46% 41.09% Largest State Cncentratin % 12% 12.23% 15.60% 10.80% 11.37% 11.11% Class A Capital Structure 85.25% 85.25% 85.25% 85.25% 85.25% 85.00% Class A Cupn 3.96% 4.08% 4.21% 3.22% 3.22% 3.84% Class A Rating 5 AAA / Aaa AAA / Aaa AAA / Aaa AAA / Aaa AAA / Aaa AAA / Aaa Class B Capital Structure 8.75% 8.00% 8.00% 8.00% 8.00% 8.25% Class B Cupn 4.94% 5.54% 5.68% 4.94% 6.17% 6.77% Class B Rating 5 BBB / Baa2 BBB / Baa2 BBB / Baa2 BBB / Baa2 BBB / Baa2 BBB / Baa2 Asset WAL (Years) All deals discunted at 5.5% except JGWPT discunted at 5% 2. Fr structured settlements and ltteries nly 3. Lwer rating f Mdy s and S&P 4. Des nt reflect cnslidatin f related entities 5. Ratings reflect Mdy s/dbrs 2014 JGWPT Hldings Inc

31 VII. HISTORICAL COLLATERAL PERFORMANCE AND SECURITIZATION OVERVIEW 2014 JGWPT Hldings Inc

32 HISTORICAL COLLATERAL PERFORMANCE Prir securitizatins have built additinal enhancements via de-leveraging f the capital structure since issuance 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% Original O/C 20.00% Current O/C 15.00% 10.00% 5.00% 0.00% Analysis f Actual-t-Expected cllectins highlights the predictability & cnsistency f cllectins Expected Cllectins Actual Cllectins Surce: Mnthly transactin servicer reprts as f 12/31/ JGWPT Hldings Inc

33 COLLATERAL POOL CHARACTERISTICS Cmpany has purchased ver $5.9 billin f curt rdered payments since 2002, with cumulative lsses ver 12 years less than 0.08% Lsses ccur frm underwriting r administrative errrs Securitizatin investrs have never suffered a lss Over 86% f cunterparties that cllateralize JGWPT s securitizatin are rated A3 r better by Mdy s Significant diversificatin f risk acrss cunterparties, gegraphies, maturity prfiles, and surcing channels Securitizatin Obligr Cncentratins Securitizatin Obligr Ratings 1 Obligr % f Pl Metrplitan Life Insurance Cmpany 12.42% American General Life Insurance Cmpany 10.54% Prudential Insurance Cmpany f America 7.94% Allstate Life Insurance Cmpany 5.91% Jhn Hancck Life Insurance Cmpany (USA) 5.76% Genwrth Life and Annuity Insurance Cmpany 4.92% Hartfrd Life Insurance Cmpany 4.89% Genwrth Life Insurance Cmpany 4.15% MetLife Insurance Cmpany f Cnnecticut 3.69% Symetra Life Insurance Cmpany 3.52% Other 90 Obligrs 36.28% Ttal % A2 t A3 32% Nt Rated 12% Baa1 t Ba2 2% A1 r Higher 54% A1 r Higher A2 t A3 Baa1 t Ba2 Nt Rated 1. Cncentratins based n assets discunted at 5.5% 2014 JGWPT Hldings Inc

34 SECURITIZATION OVERVIEW J.G. WENTWORTH (1) Transactin 2002-a 2004-a Insurer MBIA MBIA MBIA MBIA MBIA MBIA MBIA MBIA Clsing Date 11/26/ /17/ /15/2005 3/22/2006 6/22/2006 9/26/ /20/2006 3/22/2007 Initial rating S&P 1 AAA AAA AAA AAA AAA AAA AAA AAA Initial rating Mdy's 1 Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Initial rating AM Best 1 NA NA NA NA NA NA NA NA DBRS 1 NA NA NA NA NA NA NA NA ADRB: Original Balance $ 66,689,484 $ 164,457,747 $ 241,287,121 $ 81,767,739 $ 80,467,562 $ 92,866,212 $ 83,165,207 $ 98,214,007 Current Balance $ 14,421,974 $ 69,538,410 $ 123,765,365 $ 42,535,395 $ 48,043,599 $ 56,159,651 $ 48,355,209 $ 59,710,973 Nte Balances Original Balance $ 60,020,500 $ 152,679,000 $ 228,017,000 $ 76,862,000 $ 75,638,000 $ 87,665,000 $ 78,590,000 $ 92,811,000 Current Balance A-1 $ 7,500,328 $ 38,207,010 $ 69,861,261 $ 19,320,348 $ 22,433,233 $ 24,534,235 $ 22,620,046 $ 36,967,975 Current Balance A-2 $ - $ 19,700,981 $ 37,636,287 $ 18,450,225 $ 20,842,214 $ 26,521,401 $ 21,355,144 $ 17,546,420 Current Balance B $ - $ - $ 2,293,261 $ - $ - $ - $ - $ - Current Balance C $ - $ - $ - $ - $ - $ - $ - $ - Nte Pay dwn $ 52,520,172 $ 94,771,010 $ 118,226,191 $ 39,091,427 $ 32,362,553 $ 36,609,364 $ 34,614,810 $ 38,296,605 NPV - Defaulted Deals Histrical Cash Cllectins: Expected Cash Cllectins per PPM $ 78,422,410 $ 162,576,083 $ 208,356,623 $ 69,673,501 $ 64,319,892 $ 70,499,742 $ 62,299,897 $ 70,951,794 Actual Cash Cllected $ 78,442,808 $ 162,458,279 $ 209,323,043 $ 69,558,563 $ 64,318,231 $ 70,479,441 $ 62,304,554 $ 71,106,577 (Shrtfall) / Excess $ 20,398 $ (117,804) $ 966,420 $ (114,938) $ (1,660) $ (20,301) $ 4,656 $ 154,783 % Nt Cllected / (Excess) 0.03% -0.07% 0.46% -0.16% 0.00% -0.03% 0.01% 0.22% Prjected Cash Cllectins: $ 17,677,499 $ 99,171,015 $ 182,086,999 $ 61,194,837 $ 75,455,309 $ 84,656,132 $ 71,923,570 $ 95,197,943 Expected A Nte Maturity Date 5/15/2017 1/15/ /15/2028 5/15/2023 1/15/2028 7/15/2027 7/15/2022 5/15/2031 Original O/C Levels 10.00% 7.16% 5.50% 6.00% 6.00% 5.60% 5.50% 5.50% Current O/C Levels 47.99% 16.73% 11.29% 11.20% 9.92% 9.09% 9.06% 8.70% Reserve Amunt $ 666,895 $ 1,644,577 $ 2,412,871 $ 817,677 $ 804,676 $ 928,662 $ 831,652 $ 982,140 Current Reserve Rati 4.62% 2.36% 1.95% 1.92% 1.67% 1.65% 1.72% 1.64% 1. Updated as f 3/15/ Initial ratings apply t senir ntes nly 2014 JGWPT Hldings Inc

35 SECURITIZATION OVERVIEW J.G. WENTWORTH (1) cnt d Transactin Insurer MBIA MBIA Clsing Date 6/21/2007 9/27/2007 3/14/2008 5/9/ /19/2008 4/20/2010 8/12/ /4/2010 Initial rating S&P 1 AAA AAA AAA AAA NR NA NA NA Initial rating Mdy's 1 Aaa Aaa Aaa NA Aaa Aaa Aaa Aaa Initial rating AM Best 1 NA NA NA NA aaa NA NA NA DBRS 1 NA NA NA NA NA NA NA NA ADRB: Original Balance $ 93,807,239 $ 105,277,981 $ 117,624,123 $ 123,879,612 $ 93,894,627 $ 252,110,365 $ 115,021,791 $ 210,732,720 Current Balance $ 63,237,042 $ 70,186,630 $ 80,351,026 $ 89,541,981 $ 69,366,874 $ 196,703,047 $ 82,596,173 $ 160,247,724 Nte Balances Original Balance $ 88,641,000 $ 99,487,000 $ 111,156,000 $ 117,066,000 $ 88,730,000 $ 234,460,000 $ 106,107,000 $ 197,732,000 Current Balance A-1 $ 41,003,874 $ 63,767,058 $ 61,599,847 $ 75,357,571 $ 52,797,242 $ 148,394,968 $ 64,539,565 $ 127,175,325 Current Balance A-2 $ 17,254,636 $ - $ 3,235,000 $ - $ 6,525,803 $ - $ - $ - Current Balance B $ - $ - $ 3,235,000 $ 6,194,000 $ 4,695,000 $ 26,470,000 $ 8,914,000 $ 17,009,000 Current Balance C $ - $ - $ 3,529,000 $ - $ - $ - $ - $ - Nte Pay dwn $ 30,382,490 $ 35,719,942 $ 39,557,153 $ 35,514,429 $ 24,711,955 $ 59,595,032 $ 32,653,435 $ 53,547,675 NPV - Defaulted Deals ,508 - Histrical Cash Cllectins: Expected Cash Cllectins per PPM $ 65,226,946 $ 73,516,708 $ 79,030,288 $ 76,244,155 $ 59,233,377 $ 109,635,000 $ 47,600,968 $ 77,848,249 Actual Cash Cllected $ 65,303,654 $ 73,601,563 $ 79,115,977 $ 76,344,810 $ 59,390,568 $ 110,585,198 $ 47,696,831 $ 78,848,545 (Shrtfall) / Excess $ 76,709 $ 84,855 $ 85,689 $ 100,655 $ 157,191 $ 950,198 $ 95,863 $ 1,000,296 % Nt Cllected / (Excess) 0.12% 0.12% 0.11% 0.13% 0.27% 0.87% 0.20% 1.28% Prjected Cash Cllectins: $ 108,091,918 $ 119,104,414 $ 131,398,999 $ 148,325,453 $ 129,935,868 $ 311,663,416 $ 108,851,033 $ 208,765,649 Expected A Nte Maturity Date 12/15/2035 8/15/ /15/2026 9/15/2031 4/15/2037 8/15/ /15/ /15/2027 Original O/C Levels 5.50% 5.50% 5.50% 5.50% 5.50% 7.00% 7.75% 7.00% Current O/C Levels 7.87% 9.15% 10.89% 8.92% 7.71% 11.10% 11.07% 10.02% Reserve Amunt $ 938,072 $ 1,052,780 $ 1,176,241 $ 1,238,796 $ 938,946 $ 2,521,104 $ 2,300,436 $ 2,126,239 Current Reserve Rati 1.48% 1.50% 1.46% 1.38% 1.35% 1.28% 2.79% 1.33% 1. Updated as f 3/15/ Initial ratings apply t senir ntes nly 2014 JGWPT Hldings Inc

36 SECURITIZATION OVERVIEW J.G. WENTWORTH & JGWPT (1) cnt d Transactin Insurer Clsing Date 6/15/ /8/2011 3/16/2012 7/25/ /19/2012 3/20/2013 7/30/ /18/2013 Initial rating S&P 1 NA NA NA NA NA NA NA NA Initial rating Mdy's 1 Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Initial rating AM Best 1 NA NA NA NA NA NA NA NA DBRS 1 AAA AAA AAA AAA AAA AAA AAA AAA ADRB: Original Balance $ 260,679,673 $ 203,666,776 $ 250,081,605 $ 169,515,859 $ 214,773,704 $ 232,374,357 $ 187,318,250 $ 228,112,005 Current Balance $ 227,779,474 $ 186,067,200 $ 230,892,436 $ 160,927,760 $ 206,101,819 $ 228,254,499 $ 186,358,492 $ 225,946,266 Nte Balances Original Balance $ 247,256,000 $ 189,206,000 $ 232,441,000 $ 158,074,000 $ 200,276,000 $ 216,689,000 $ 174,674,000 $ 212,714,000 Current Balance A-1 $ 188,941,643 $ 155,117,921 $ 192,846,898 $ 135,039,816 $ 173,747,025 $ 189,748,174 $ 155,830,502 $ 191,822,717 Current Balance A-2 $ - $ - $ - $ - $ - $ - $ - $ - Current Balance B $ 21,212,000 $ 15,580,000 $ 20,564,000 $ 13,985,000 $ 17,181,000 $ 18,589,000 $ 14,985,000 $ 18,248,000 Current Balance C $ - $ - $ - $ - $ - $ - $ - $ - Nte Pay dwn $ 37,102,357 $ 18,508,079 $ 19,030,102 $ 9,049,184 $ 9,347,975 $ 8,351,826 $ 3,858,499 $ 2,643,283 NPV - Defaulted Deals - 21,851-42,336-49,565 11,302 - Histrical Cash Cllectins: Expected Cash Cllectins per PPM $ 70,472,647 $ 40,774,229 $ 40,152,707 $ 19,958,366 $ 18,945,985 $ 12,439,734 $ 6,219,524 $ 5,780,276 Actual Cash Cllected $ 71,597,136 $ 41,521,988 $ 40,688,645 $ 20,025,105 $ 19,379,004 $ 16,094,361 $ 9,059,549 $ 7,022,374 (Shrtfall) / Excess $ 1,124,489 $ 747,760 $ 535,937 $ 66,739 $ 433,019 $ 3,654,627 $ 2,840,024 $ 1,242,098 % Nt Cllected / (Excess) 1.60% 1.83% 1.33% 0.33% 2.29% 29.38% 45.66% 21.49% Prjected Cash Cllectins: $ 333,884,708 $ 304,085,551 $ 353,176,011 $ 242,934,521 $ 294,031,645 $ 327,133,378 $ 291,778,106 $ 348,184,914 Expected A Nte Maturity Date 3/15/2038 6/15/2041 5/15/2040 8/15/2043 5/15/2041 4/15/ /15/2042 8/15/2039 Original O/C Levels 6.75% 7.10% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75% Current O/C Levels 7.74% 8.26% 7.57% 7.40% 7.36% 8.73% 8.34% 7.03% Reserve Amunt $ 2,651,539 $ 2,036,668 $ 2,493,243 $ 1,695,159 $ 2,147,772 $ 2,323,744 $ 1,875,902 $ 2,281,270 Current Reserve Rati 1.16% 1.09% 1.08% 1.05% 1.04% 1.02% 1.01% 1.01% 1. Updated as f 3/15/ Initial ratings apply t senir ntes nly 2014 JGWPT Hldings Inc