Old Mutual Announces AIG Exposure

September 22 - Old Mutual investors officially learned last Thursday that the insurance and investment company has exposure worth $237 million to the battered AIG insurance group in the United States.

AIG was near collapse at the beginning of last week, and only an emergency assistance package from the United States government, worth $85 billion saved the company from complete ruin.

According to the statement launched on Thursday, Old Mutual reassured the public that it held no common equity in AIG and it had minimal reinsurance exposure to the company.

The statement said that "Old Mutual continues to monitor developments in the markets closely, with risk management procedures, credit and capital controls continuing to ensure that Old Mutual has a strong balance sheet and sound capital position."

Old Mutual broke down the exposure to AIG as follows: $77 million in hybrid and subordinated debt, $76 million exposure to senior debt through Old Mutual Life in the United States and $84 million in insurance policies.

In other Old Mutual news, the company came out tops in the annual Top Brands survey as the best insurance company among consumers in South Africa.

In a similar consumer survey, run by 'get closure', Old Mutual achieved 100% satisfaction among consumers when it came to handling complaints, with an average 2 out of 4 rating.

Sanlam came out as top insurance company in the 'get closure' survey, with 100% satisfaction for the handling of complaints and three out of four rating.