Total exposure stands at £125m says reinsurer
Swiss Re has estimated its overall net exposure to Lehman Brothers at approximately CHF 50 million (£25m) and to American International Group (AIG) at approximately CHF 200 million (£100m).
Swiss Re acts as a reinsurer to the AIG Group companies and has invested in various securities issued by AIG. Overnight, the Federal Reserve Board announced that the Federal Reserve Bank of New York is extending a liquidity facility of up to $85 billion to AIG. The reinsurer estimates its exposure (excluding reinsurance) to AIG at approximately CHF 200 million (£100m).
These figures include, in both cases, investments, net purchases or sales of CDS protection as well as credit reinsurance, portfolio CDS, and any other counterparty exposure as of 15 September 2008.
The AIG figures above exclude amounts due to and from Swiss Re under existing reinsurance arrangements with the regulated legal entities.
