European reinsurers in total have billions of dollars invested in the troubled Fannie Mae and Freddie Mac mortgage finance companies, according to a study by Highline Data.
Highline–a unit of Summit Business Media, the parent of National Underwriter–reported that Munich American Holding Group, as of the first quarter, had combined Fannie Mae and Freddie Mac investments of some $4.9 billion, according to filings with the National Association of Insurance Commissioners by Munich America entities.
Highline also noted that PartnerRe Group, with European headquarters in Dublin, has Fannie/Freddie investments of $911 million.
According to Highline, Zurich-based Swiss Re had combined Fannie Mae and Freddie Mac holdings of some $255 million, which represented 18.9 percent of the carrier's total bond investments for entities reporting in the United States
Swiss Re, after disclosing its involvement with the two lenders, saw its stock drop today by 2.3 percent in Zurich trading.
This article updated July 17,12:09 p.m.
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