Aviva and Friends Provident have revealed a combined near-£300m exposure to Lehman Brothers in the wake of the investment bank's slide into bankruptcy this week.
Life and pensions provider Aviva reports a total debt exposure of £270m plus what it calls “minimum” equity exposure, while Friends Provident says it has a total nominal debt exposure to Lehman of £18m, predominantly in the form of senior debt. Both companies say they expect the total loss from their holdings to be “substantially lower” than their total face value exposure as a result of “a number of factors including taxes and recoveries”. Aviva says its debt exposure to Lehman Brothers is mostly senior debt but also includes money market exposure and a “small amount” of credit default s...
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