A London-based human rights group working to discourage firms from operating in Burma said two insurers among a group it highlighted for dealing with that nation are pulling out of the country.

Burma Campaign UK said today that XL and Chubb have separately announced the withdrawals in statements to the campaign. Chubb said the Burma Campaign information was erroneous and it was not doing business in Burma.

Three weeks ago Burma Campaign published a report, "Insuring Repression," charging that insurance companies have facilitated the flow of billions of dollars to the military junta that controls the Myanmar government.

XL was among firms on the organization's "Dirty List" for doing business in Burma, and Chubb was on its "Shamed List" of companies that it said would not reply about policy on Burma or state they do not provide insurance there.

According to Burma Campaign, Bermuda-based XL Capital stated that the company now has a policy that it will no longer "seek to insure Burmese companies or operations of companies in Burma."

XL, in a statement when asked for comment, said its "companies and employees comply with all relevant sanctions in the jurisdictions in which we operate. Some limited insurance was written through our Lloyd's platform, XL London Market, which had already decided not to write any insurance of Burmese entities going forward. We are not aware of any other XL company having underwritten any Burmese company; equally, XL does not have any fronting agreement in Burma and does not seek to insure Burmese companies or operations of companies in Burma."

XL Capital, Burma Campaign noted, owns both reinsurer XL Re and a large Lloyd's of London syndicate, XL London Market, which has in the past insured a Burmese regime owned airline.

Burma Campaign has leveled particularly heavy criticism at Lloyd's for refusing to drop operations in Burma.

Chubb Corp. in Warren, N.J., the Burma Campaign said, told the organization that after conducting an internal review it now "bars its member companies from maintaining an office in Burma, from directly writing insurance in Burma, or providing insurance into Burma from outside the country."

Chubb, the group said, was placed on its Shamed List after the campaign obtained company documents showing it maintained an office in Burma.

However, Chubb said its policy, which has been in effect for at least 11 years, bars its member companies from maintaining an office in Burma, directly writing insurance in Burma, providing insurance into Burma from outside the country, or entering into any transaction with the government of Burma.

"The action by The Burma Campaign UK was based on an out-of-date, erroneous list of independent service providers on Chubb's Web site, which has since been corrected. We have so informed The Burma Campaign UK and asked them to amend the characterization of Chubb on their Web site," Chubb said in a statement.

"This is a major embarrassment to Lloyd's of London; they have never taken this issue seriously and don't see any problem with helping to finance Burma's brutal dictatorship," Johnny Chatterton, Campaigns Officer at the Burma Campaign UK, said in a statement.

A Lloyd's spokesperson said Aug. 5 that "a very small amount of reinsurance is written at Lloyd's in Burmese shipping and aviation. We are unaware of any businesses at Lloyd's defying international sanctions. If we discovered any underwriters breaching sanctions, we would take action immediately."

Earlier Lloyd's issued a statement saying it does not comment on "politics or economic policies of national or international bodies" and "unless there are official U.N. sanctions in place, Lloyd's does not instruct the market where it can and cannot write business."

"Lloyd's is increasingly isolated and is seeing its reputation damaged as more and more insurers take an ethical stance against doing business with a regime that routinely persecutes, detains, tortures and murders those who want human rights and democracy," said Mr. Chatterton.

Burma Campaign included a statement from Maung Maung, General Secretary of the Federation of Trade Unions Burma, saying: "Insurance companies are facilitating trade and investment in Burma, filling the pockets of the generals and helping keep them in power.

"We welcome the news that XL and Chubb have pulled out and will no longer help to fund the regime, but we strongly condemn all insurers that remain involved in our military junta run country. They help keep the generals in power and condemn Burma's 50 million people to lives of poverty and fear. There is no excuse for the likes of Lloyd's of London being involved; they are helping to fund a brutal dictatorship."

Burma Campaign noted a British Government policy statement that "the U.K. Government discourages trade and investment with Burma."

Special Reports /

XL, Chubb Now Out Of Burma, Rights Group Says

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