from yahoo message board by reader5432

abode,you are not seriously comparing the credit default swaps and other such derivitives from Lehman, Bear,and AIG with the bonds that XL holds,are you?
The derivitives XL has deal with interest and currency risk abatement and are very small"course of business" positions for hedging or fixing those cost fluctuations.
The investment portfolio is;
$12.8bil. in Government paper and cash (probably 100% good)

$11.1bil. in corporate debt($8.7bil.Senior paper)
$1.649bil.unrealized mark to market losses as of q3
20 largest positions are worth $2.375bil.
GE,$230mil. senior
PG,$100mil.senior
T, $90mil. senior
GSK, $90mil. senior
France Telecom, $80mil. senior
RWE AG,$80mil. senior
Vodafone Group,Telefonica s.a.,WMT, $70mil. each,senior
E.ON ag,$60mil. senior
HBOS,$200mil.
BOA,$180mil.
C, $175mil.
GS, $160mil.
HSBC, $155mil.
MER, $125mil.
Lloyds, $125mil.
JPM, $115mil.
Nationwide building,Bancosantander,$100mil. each
The vast majority of the corporate bond portfolio is likely to pay off,barring financial armagedon,in which case noone wins,we all lose.

Structured credit contains $9.5bil. in loans,bonds and other securities,82% are AAA,only 4% are
BBB or below.
$1.147(12%) unrealized mark to market losses in the portfolio as of q3, of which $588mil.(6%)was AAA, $294mil.(3%) was AA, $104mil.(1%) was A .
Average life is 4.2 years,with much of the "marked to market" securities expiring sooner.There are at least 75000 different loans in this portfolio( 450securities with >165 loans each,or 74250 loans just in the CMBS portfolio)
Deliquency has been low so far,but has ticked up some ,as should be expected. This portfolio is the most suspect of the 3, but still looks sound to me.

with wide spread asset locations and loan expiration times,on diverse types of propery.