Insurers says exposure is "minimal"
Aviva said that its total debt exposure to Lehman Brothers is £270 million (at face value) as at the close of business on 15 September 2008,
The insurance group said most of its debt exposure was senior debt, but it also includes money market exposure and a small amount of credit default swaps exposure.
It expected the total loss from its holding in Lehmans debt to be substantially lower than its total face value exposure as a result of a number of factors including taxes and recoveries.
Aviva also has counterparty exposure to Lehmans through derivative contracts and securities lending transactions, and this exposure is collateralised. It is in the process of unwinding the contracts and does not expect to incur any material writedown as a result of unwinding them.
The company said: "Aviva continues to monitor developments in the market, and Aviva's risk management procedures and credit controls continue to ensure the group has a strong balance sheet and capital position."
