Swiss Re exposure to Freddie, Fannie US$9,6 bln

ZURICH – Swiss Re said yesterday it had total exposure of US$9,6 billion to US mortgage lenders Freddie Mac and Fannie Mae as of the start of July.

The reinsurer’s shares fell about eight per cent, briefly hitting their lowest level in over five years, after it said its exposure to Freddie Mac was US$5,2 billion and to Fannie Mae was US$4,4 billion at the beginning of July. “In response to questions we have received from analysts and investors, we are providing some information about our exposure to the US government sponsored agencies,” Swiss Re said in a statement.It said that its residential mortgage-backed security portfolio was split 47 per cent Freddie Mac, 44 per cent Fannie Mae and nine per cent Ginnie Mae as of March 31.Analysts at Dresdner Kleinwort and Landsbanki Kepler lowered their recommendations on Swiss Re stock earlier yesterday.Nampa-Reuters”In response to questions we have received from analysts and investors, we are providing some information about our exposure to the US government sponsored agencies,” Swiss Re said in a statement.It said that its residential mortgage-backed security portfolio was split 47 per cent Freddie Mac, 44 per cent Fannie Mae and nine per cent Ginnie Mae as of March 31.Analysts at Dresdner Kleinwort and Landsbanki Kepler lowered their recommendations on Swiss Re stock earlier yesterday.Nampa-Reuters