The aftermath of collapse

The insurance industry has revealed varied levels of exposure to recent market upheavals. Munich Re has felt the biggest blow from Lehman Brothers' failure at £276m, closely followed by Aviva at £270m. Insurers and re-insurers were large investors in the bank both through corporate bonds and direct equity share holdings. William Hawkins, an analyst at investment bank Keefe, Bruyette & Woods, said: "Most large companies have made comments. These generally give the impression that losses from direct impact to Lehman Brothers' securities can be absorbed within 2008 estimated earnings. The po...