9 Mar 2009 – Press releases

Danske Bank’s credit insurance with AIG

Press release

The Wall Street Journal is today publishing an article listing a number of European banks that have supposedly received payments from US insurer AIG. Danske Bank is included on this list.

The reason is that Danske Bank, in 2005 and 2007, entered into credit default swaps for about one third of its Danish mortgage loan portfolio through AIG, among others. The credit default swaps provide disaster coverage for Danske Bank’s credit losses in the event of extremely large losses on the insured mortgage loans.

Danske Bank pays premiums on a regular basis. The policies run for the remaining term of the underlying loans, but can be terminated in 2010.

No payouts have been made under the policies, but AIG has provided collateral for its obligations under the insurance agreements. This collateral amounts to about US$200m.

Yours faithfully,
Danske Bank

Contacts:
Peter Straarup, Chairman of the Executive Board
Tel. +45 45 14 60 01, mobile +45 25 10 19 19
Anders Klinkby Madsen, Head of Press Relations
Tel. + 45 14 57 95, mobile +45 25 10 19 19

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