FACTBOX-Canadian insurers' exposure to AIG, Lehman

Sept 18 Thu Sep 18, 2008 10:32am EDT

Sept 18 (Reuters) - Canadian insurance companies expect to take unspecified quarterly charges on the American International Group (AIG.N) and Lehman Brothers securities they hold.

Insurance holding company AIG was bailed out by an emergency loan from the U.S. Federal Reserve this week, while Lehman Brothers Holdings LEH.N, parent of the storied investment bank, sought bankruptcy protection.

Rating agency DBRS said on Wednesday that it reviewed Canadian life insurance companies' exposures to these securities, and there are no ratings implications.

Here is what companies have reported:

- Great-West Lifeco (GWO.TO), which is controlled by Power Financial (PWF.TO): C$101 million par value fixed income securities of Lehman Brothers; C$149 million par value of AIG fixed income securities; and C$198 million exposure to various securities of AIG subsidiaries.

- Sun Life Financial (SLF.TO): C$88 million par value bond securities of AIG Inc; C$227 million bond securities of various AIG subsidiaries; C$334 million par value Lehman bonds; C$15 million net value Lehman derivatives.

- Manulife Financial (MFC.TO): $383 million par value Lehman fixed-income investments; $12 million net Lehman derivatives exposure; $47 million fixed-income and "other" exposure to AIG; $243 million fixed income and "other" exposures to AIG subsidiaries; $84 million net derivatives exposure to AIG's financial products division.

- Kingsway Financial Services (KFS.TO): $17 million par value Lehman fixed-income investments; $30.25 million in three AIG subsidiaries.

- Industrial Alliance Insurance and Financial Services (IAG.TO): C$16 million in AIG bonds; no exposure to Lehman. ($1=$1.07 Canadian) (Reporting by Lynne Olver; Editing by Peter Galloway)