MSP Recovery, Inc. (MSPR) Q3 2022 Results Conference Call November 9, 2022 8:00 AM ET

Company Participants

Alexandra Plasencia - General Counsel

John Ruiz - Founder and CEO

Chris Miranda - Chief Information Officer

Calvin Hamstra - Chief Financial Officer

Conference Call Participants

Josh Siegler - Cantor Fitzgerald

Kyle Bowser - Lake Street

Ben Haner - Alliance Global

Operator

Good day, ladies and gentlemen. And welcome to the MSP Recovery’s 2022 Third Quarter Earnings Conference Call. You can view the video webcast presentation by accessing the link at the MSP recovery Web site under the investor events section [Operator Instructions]. As a reminder, this call may be recorded. I would now like to begin today’s earnings presentation.

Alexandra Plasencia

Good morning, everyone. And welcome to MSP Recovery’s third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. Before we begin, please note that statements made during this presentation, which state the Company’s or management's intentions, beliefs, expectations or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act and actual results could differ in a material manner. Additional information about factors that could cause results to differ from those in the forward-looking statements is contained in the Company's SEC filings. This includes, but is not limited to, risk factors contained MSP Recovery’s SEC filings and in the news release issued earlier today. A copy of these materials can be found in the Investors section at msprecovery.com. Non-GAAP financial measures are included in our comments today and in our presentation slides. The reconciliation of these non-GAAP measures to the corresponding GAAP measures is included at the end of the presentation slides, and can be found in the Investors section of the MSP Recovery Web site. The participants on today's call will be Founder and CEO of MSP Recovery, John H. Ruiz; Chief Information Officer, Chris Miranda; and Chief Financial Officer, Calvin Hamstra.

I would now like to turn the call over to John H. Ruiz.

John Ruiz

Good morning, everyone. I'm John H. Ruiz, CEO of MSP Recovery. Welcome to our earnings call. Today, we will share MSP Recovery’s third quarter 2022 highlights, earnings and an overview of recoveries. I will provide some quarterly highlights while Chris Miranda, our CIO, will discuss data matching, and Calvin Hamstra, our CFO, will walk you through our quarterly financials. Now I'd like to discuss some of our third quarter highlights regarding MSP's recovery efforts and the LifeWallet platform. As announced on October 13, 2022, MSP negotiated a $63 million debt reduction with Brickell Key Investments by entering into a new warrant agreement. In addition, this transaction is expected to save about $40 million in interest expense year-over-year until such time as recoveries would have otherwise covered the debt. On our recovery efforts, our paid value of potentially recoverable claims continues to grow. As of September 30th, we have $89.2 billion in paid value of potentially recoverable claims. This balance of potential recoverable claims exceeds our projections by three and one half times. We continue to make progress in our recovery efforts towards larger settlements. Notably, we recently settled an accident related case in which we collected $1.75 million at 2 times the recovery multiple and a Group Health Plan recovery for $1.15 million. The accident related settlement is consistent with our projected recovery multiple, and the Group Health Plan recovery represents a recovery that was not identified within our PVPRC. As mentioned previously, we continually seek to find new potential recovery paths and this represents a recovery that was never funneled or identified within our reported PVPRC, which is $89.2 billion. Unfunneled recoveries are not included in our projection of potential recoveries. This represents an important opportunity within our recovery rates, which can provide an upside to recoveries.