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RGA invested $90M in Lehman Brothers, AIG

by St. Louis Biz Journal - Sep 18,2008

Reinsurance Group of America Inc. invested a total of $90 million in Lehman Brothers Holdings Inc. and American International Group Inc.

RGA owns more than $30 million in Lehman notes and securities, according to a filing Wednesday with the Securities and Exchange Commission.

The notes recently traded at 30 percent of their value, and the securities recently traded at less than 4 percent of their value, RGA said.

RGA also owns AIG notes and securities totaling nearly $60 million, according to the filing. The notes recently traded at 52 to 60 percent of their value, while the securities traded at 21 to 29 percent of their value, RGA said.

The trading values were prior to the U.S. government's announcement Tuesday that the Federal Reserve will provide AIG with a 2-year $85 billion credit facility.

Over the weekend, Lehman Bros. Holdings Inc. (NYSE: LEH) failed to find a buyer and filed for Chapter 11 bankruptcy reorganization — the largest bankruptcy filling in U.S. history.

Chesterfield, Mo.-based Reinsurance Group of America (NYSE: RGA) provides reinsurance for life insurance companies.

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© American City Business Journals Inc. All rights reserved.

 

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