WASHINGTON—The Heartland Institute has agreed to split off its insurance-research unit effective May 31.

Joseph Bast, Heartland president, announced the deal this afternoon.

The agreement was prompted by widespread criticism of the parent firm's ad criticizing supporters of efforts to reduce global warming, which caused insurance companies to withdraw support for Heartland.

Insurers withdrawing support included the Association of Bermuda Insurers and Reinsurers, which represents 22 Bermuda-based companies, State Farm, XL Group, Allied World Assurance, USAA, and RenaissanceRe Holdings Ltd.

According to Bast, Eli Lehrer will continue to serve as director of Heartland's Washington D.C. office and its Center on Finance, Insurance, and Real Estate until May 31.

Ties between the two will then end, Bast says.

In his statement, Bast comments, “We urge any individual, foundation and corporation with an interest in insurance and related finance issues to contribute to [FIRE center Director Eli Lehrer's] new organization once it is up and running.”

The primary business of the Washington and allied offices is to expand market-based solutions to catastrophe issues, including providing a role for reinsurers in funding the National Flood Insurance Program.

The Washington group has experts on staff who closely track federal and state efforts to deal with flood, and catastrophe issues, including state-based earthquake and windstorm funds.

It has satellite offices in Austin, Texas, Tallahassee, Fla., and Columbus, Ohio.

Bast says, “We're convinced this will be a win-win situation for Heartland as well as Eli Lehrer and his team of very skillful and devoted policy experts. We look forward to working closely with Eli in the future.”

Lehrer says, “Separating our project from Heartland will allow us to focus on the issues that we are best known for and good at. I have worked with the Heartland Institute for many years, and now, under a new name, my team and I will continue to ally ourselves with Heartland where we can both work to advance the cause of freedom and free markets.”

Special Reports /

Heartland Institute's Washington Unit Will Split from Parent on May 31

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