Tuesday 8 December 2009

Old Mutual, CNA Biggest Insurer Investors in Dubai

CNA Financial Inc., Lincoln National Corp. and Old Mutual Plc’s U.S. life unit are the American insurers with the most bonds sold by Dubai World, the holding company that’s in talks to renegotiate $26 billion of debt.

Old Mutual’s U.S. life unit has $83.6 million in Dubai World-related bonds, Lincoln National has $57.3 million and CNA has $58.4 million, Moody’s said today in a report. The risk to insurers totals $590 million in book value and is “very limited,” the ratings firm said.

Dubai World, the state-owned company with $59 billion in liabilities, said last week that it would seek to restructure some of its obligations. Dubai World and its entities accumulated debt during a five-year real-estate boom in which the sheikhdom borrowed $10 billion and its state-controlled companies $70 billion to help diversify the economy.

No comments:

Post a Comment