ProAssurance has $35M exposure to 'headline' firms

Medical liability insurer ProAssurance said Wednesday it had roughly $34.6 million in exposure through its ownership of stock and debt in Lehman Brothers, AIG, Washington Mutual, Fannie Mae and Freddie Mac.

It said it was disclosing its exposure to companies that have been "in the headlines."

The company said it held $21.6 million in senior notes of Lehman Brothers Holdings Inc. British bank Barclays PLC said Tuesday it would buy Lehman's North American investment banking and trading operations for just $250 million, one day after Lehman filed the biggest bankruptcy in U.S. history.

ProAssurance Corp. also said it had $2.8 million in senior debt of American International Group Inc. and its subsidiaries. The Federal Reserve said Tuesday it will give AIG an $85 billion loan and take a nearly 80 percent stake in the insurer, which lost billions insuring against bond defaults.

As of Thursday, ProAssurance also held $8.9 million in preferred stock in Fannie Mae, $1 million in preferred stock in Freddie Mac, and $300,000 in subordinated debt of Washington Mutual.

The company said it would gives quarterly updates on that portfolio of holdings.

Shares fell 44 cents to $57.03 in midday trading Wednesday.