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

Joseph Bast, Heartland president, announced the deal thisafternoon.

The agreement was prompted by widespread criticism of theparent firm's ad criticizing supporters of efforts to reduce globalwarming, which caused insurance companies to withdraw supportfor Heartland.

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

According to Bast, Eli Lehrer will continue to serve as directorof 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 andrelated finance issues to contribute to [FIRE center Director EliLehrer's] new organization once it is up and running.”

The primary business of the Washington and allied offices is toexpand market-based solutions to catastrophe issues, includingproviding a role for reinsurers in funding the National FloodInsurance Program.

The Washington group has experts on staff who closely trackfederal and state efforts to deal with flood, and catastropheissues, 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 forHeartland as well as Eli Lehrer and his team of very skillful anddevoted policy experts. We look forward to working closely with Eliin the future.”

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