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Lloyd's of London

Lloyd's of London

Industry: 
Financial Services
Symbol: 
LON:LLOY
States: 
CA
IL
KY
NY
Country: 
UK
Contact Information: 

Hank.Watkins@Lloyds.com (President of Lloyd’s North America)
Christina.Nallaiah@lloyds.com (Investor Relations Manager)
enquiries@lloyds.com (general)

Sources: 
"The New York state regulator has called on Lloyd’s of London to provide it with full details of its internal investigation into whether market insurers breached international sanctions by trading with Iran. A 'person familiar with the matter' said New York Department of Financial Services (DFS) superintendent Benjamin Lawsky had asked Lloyd’s for files on the internal probe, Bloomberg has reported. Lloyd’s had told the DFS on 30 July that it had contracts with two firms that were believed to have shipped thousands of tons of alumina to an Iranian firm that provided aluminium for Iran’s nuclear programme, according to the source. A DFS inquiry into whether 20 non-US entities including Lloyd’s were violating the US Iran Freedom and Counter-Proliferation Act of 2012 (IFCPA) was in progress on 1 July, US media reported. A Lloyd’s spokesman said: 'The New York regulator is engaged in an industry-wide review. Lloyd’s takes sanctions compliance very seriously and there is no evidence of any breach. Reviewing all aspects of managing agents’ performance is part of the day-to-day role of overseeing the Lloyd’s market. This includes conforming with all applicable international sanctions, which we have always done.'" (Financial Times, "New York regulator asks Lloyd's for Iran files," 8/30/13)
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"New York's top financial regulator has expanded a probe into whether reinsurance companies have written policies on international trade with Iran, which could potentially violate new U.S. sanctions. In a letter posted to its website on Wednesday, the state's Department of Financial Services asked reinsurers to explain their dealings with entities and people that have ties to Iran. The department also asked reinsurers to explain procedures in place to ensure compliance with the Iran Freedom and Counter-Proliferation Act of 2012, which took effect on July 1. Twenty reinsurers are getting the letter, including Hannover Re, Lloyd's of London and Swiss Re, a person familiar with the matter said. Those reinsurers were among those contacted last month by the regulator, whose superintendent is Benjamin Lawsky, over their dealings involving Iran… The new law bans financial services companies that do business in the United States, such as insurers and reinsurers, from providing services to companies that trade with Iran. Such a ban can make it harder for shippers to transact with Iran, because they need insurance to protect against the risk of losses on big shipments." (Reuters, "NY Regulator Expands Probe Into Reinsurers' Iran Ties," 7/24/2013)
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"Swiss Reinsurance Co. and Lloyd’s of London, the world’s oldest insurance market, are among companies being probed by a New York regulator about their compliance with an expanded Iran sanctions law. The state Department of Financial Services is asking the insurers about their procedures to avoid violations of the Iran Freedom and Counter-Proliferation Act of 2012, according to a letter from the department obtained by Bloomberg News. The department, led by Superintendent Benjamin Lawsky, said it learned that several insurers issued coverage that applied to trades made with Iran, including one policy issued by a group of European domiciled companies, according to the letter. The policy and the resulting claim payment 'would likely violate the IFCPA,' the department said, referring to the act. 'Lloyd’s will comply with any applicable sanctions, as it always has done' said a spokeswoman, Caroline Harris-Gibson, at Prosek Partners." (Bloomberg, "Insurers Quizzed by N.Y. Regulator Lawsky on Iran Links," 7/1/2013).
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"The insurance industry and prominent Democratic lawmakers are attempting to water down a new Iran sanctions bill that would penalize any company that underwrites Iranian affiliates, according to insiders on Capitol Hill . . . The legislation, which is currently working its way through the House, would tighten existing Iran sanctions by punishing any insurance company that underwrites activities that bolster the Iranian oil industry. Insurance providers could be sanctioned for underwriting shipping companies, cargo carriers, or airlines that have been subject to sanctions . . .  The now-bankrupt law firm Dewey & LeBoeuf is said to have moved aggressively against the measure on behalf of its client Lloyd’s of London, an international insurance group, multiple sources told the Free Beacon. Lloyd’s did not respond to a request for comment, and attempts to reach former LeBoeuf lobbyists who worked on the issue were unsuccessful . . . 'If these insurers would stop providing that coverage that companies have to support these risks [of dealing with Iran] on their own,' explained Nathan Carleton, spokesperson for United Against Nuclear Iran, a nonpartisan advocacy group. 'No one should be insuring business with Iran, and if these companies are lobbying to stop these sanctions we would oppose it because it’s not right.'" (Free Beacon, "INSURING AHMADINEJAD," 7/25/12)
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"Lloyd's of London will not insure or reinsure petroleum shipments going into Iran, the insurance market said on Friday, in another blow to the Islamic Republic from wide-ranging U.S. sanctions...'The U.S. is an important market for Lloyd's and, in recognition of this, the market will not insure or reinsure refined petroleum going into Iran,' Lloyd's General Counsel Sean McGovern told Reuters in a statement. 'Lloyd's will always comply with applicable sanctions,' McGovern added." (Reuters, “Lloyd's says won't cover Iran petroleum shipments,” July 9, 2010).
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Lloyd's of London [LOL.UL], the insurance market, is restricting cover for any ships carrying petroleum to Iran, the Financial Times reported on its website late Thursday.   Lloyd's was quoted as saying it would ensure its members complied with new U.S. rules once President Barack Obama signed new sanctions legislation." (Reuters, "Lloyd's Cover for Iran Petroleum Shipments," 7/2/2010)
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"Lloyd’s of London, the insurance market, will cut its coverage for refined oil shipments to Iran if the US passes wide-ranging sanctions legislation. Lloyd’s told the Financial Times it would comply with the legislation, versions of which have been approved by both houses of Congress... 'If the legislation is passed and sanctions are put in place by the US, we would comply and ensure underwriters in Lloyd’s were compliant, although we would not want the compliance burden to be disproportionate,' said Sean McGovern, general counsel for Lloyd’s.

Lloyd’s is telling underwriters they would be wise to review their contracts to look for ships heading to Iran. Mr McGovern said it was possible that underwriters would be compelled positively to ensure that a ship they had covered would not be going to Iran. This could take the form of inserting exclusionary clauses in future contracts, specifying that ships would not be covered if they carried goods to Iran." (Financial Times, "Lloyd's to Abide by Any Iran Sanctions," 2/16/10)

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 "U.S. officials are considering targeting big financial firms including Lloyd's of London in a bid to impose tougher sanctions on Iran over its nuclear programme... The White House is keen to concentrate on Iran's dependence on refined oil imports and insurance firms that underwrite the trade...Mark Dubowitz, of the Foundation for Defence of Democracies policy institute, said: 'The key fulcrum is the insurance and reinsurance companies. 'It's difficult to ship without insurance and reinsurance.' A statement from Lloyd's of London said it would take action to ensure any new sanctions were abided by. It said: 'Lloyd’s covers less than 10 per cent of the shipping that carries refined oil to Iran. 'If new sanctions were put in place, we would immediately take action to make sure underwriters were compliant.'" (Daily Mail, "Obama to target Lloyd's of London in plan for tougher sanctions on Iran," 10/2/09)

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"The US and its allies are stepping up efforts to push through sanctions on companies that provide Iran with insurance following last week’s revelation that Tehran is building an undeclared nuclear facility. The move could affect the business of groups such as Lloyd’s of London and Munich Re, hit Iran’s supply of refined oil and bypass the UN Security Council, where both Russia and China have signalled their misgivings about sweeping new sanctions... The London insurance market said: 'Lloyd’s covers less than 10 per cent of the shipping that carries refined oil to Iran. If new sanctions were put in place, we would immediately take action to make sure underwriters were compliant.'" (Financial Times, "Insurers targeted in Iran sanctions push," 9/28/09) 

Response: 

 

"Lloyd's of London will not insure or reinsure petroleum shipments going into Iran, the insurance market said on Friday, in another blow to the Islamic Republic from wide-ranging U.S. sanctions."  (“Lloyd's says won't cover Iran petroleum shipments,” Reuters, July 9, 2010).