Better buy an old ledger nano s wallet.
I don't want to waste any money on junk.
They have said that first your seed phrase is encrypted, and then that encrypted seed phrase is split in to a 2-of-3 Shamir's scheme, with one share given to each of those companies. They have not however, as far as I am aware, said anything about how your seed phrase is actually encrypted, what encryption algorithms are being used, how the encryption key is generated, or who stores it.
I listened to Andreas Antonopoulos talking with Jameson Lopp and he said that ledger is probably using industry standard encryption (I can't remember exact name), but there is no way for anyone to confirm or prove that.
Since they don't have any plans to stop with Recovery plans, we are going to find out more details in next few months.
I am glad some other hardware wallets are going different direction and releasing everything as open source (for example Coolwallet).