American International Group Inc. is exiting business activities in Iran that came with a subsidiary it acquired and which now butt up against the sanctions against Iran that have been reimposed by the Trump administration, according to a filing.
Validus Holdings Ltd, a Bermuda-based reinsurer that AIG acquired for $5.56 billion in July, is winding down insurance coverage it provides to shipping companies that transport cargo to and from Iran, according to an AIG filing on Nov. 2.
According to cargo, crude oil shipped from Iran and refined petroleum products sent to Iran.
In May, President Donald Trump withdrew the United States from six major powers designed to stop Iran’s nuclear weapons program from Iran’s 2015 nuclear deal and order the sanctions imposed on Tehran.
On Monday, the US restored sanctions targeting Iran’s oil, banking and transport sectors and took more steps to stop its ı unlawful ”policies, calling the Islamic Republic an economic war and promising to resist.
European insurance companies, reinsurers, brokers and maritime companies have shaken their jobs in Iran since May 4th, as the United States was preparing to reorganize sanctions on insurance and reinsurance starting on November 4.
AIG provides Iran-related insurances, including ships, warfare, cargo and debt coverage, to non-US Validus subsidiaries. AIG also said that the company is out of some reinsurance policies, including Iran.
In July, AIG obtained a license from the US Department of State’s Bureau of Control, allowing the company to undertake filing operations for Iranian businesses. AIG said the income of Iran’s insurance is minimal.
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