Property-casualty insurance companies' investment exposures to the financially-stressed Fannie Mae and Freddie Mac mortgage companies are large for some and manageable for most, according to Bank of America.

The bank's equity research arm said 20 U.S. p-c companies it analyzed have a total of approximately $39 billion invested in securities issued by Fannie Mae and Freddie Mac, of which $37 billion are asset-backed or other debt securities and $2 billion are preferred stock.

It found that the Fannie/Freddie exposures for Horace Mann, W.R. Berkley, Hanover Insurance, ACE, and Selective each represent over 20 percent of their common equity.

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