Swiss Re reveals $178m AIG exposure

by David Masters

Story link: Swiss Re reveals $178m AIG exposure

Swiss Re has declared its exposure to struggling US insurance firm American International Group as $178 million (£100 million), whilst its exposure to the failed Lehman Brothers bank is $45 million (£25 million).

AIG, the primary insurer of Lehman Brothers, was this week rescued from the verge of bankruptcy by an $85 billion loan from the US government.

As well as acting as reinsurer to AIG, Swiss Re has investments in a number of AIG’s securities.

Swiss Re said the exposure figures include investments, credit reinsurance, and counterparty exposure.

However, the figures exclude money due to and from Swiss Re under the current reinsurance arrangements with the regulated legal entities.

The company added that it had chosen to release its exposure figures due to ‘recent unprecedented events in the global financial markets’ and because of requests from investors to do so.

Meanwhile, Barclays has agreed terms with Lehman Brothers to acquire Lehman Brothers North American assets for $1.75 billion (£1 billion).

In addition to moving capital markets and banking businesses to Barclays, Lehman Brothers’ New York headquarters and two other centres will now be run by the UK banking giant.