Heath Lambert Ltd., the British insurance broker acquired in 2011 by Arthur J. Gallagher, is holding reinsurance payments the cedent refuses to accept out of fear of violating European Union sanctions imposed on Iran.
In a filing with the Securities & Exchange Commission, AJG says Heath Lambert is holding $14,343.75 it received from Bimeh Iran Insurance Co. under a reinsurance policy it placed on behalf of a U.K. carrier for a marine hull reinsurance contract back in 1998 for a loss that occurred in the same year.
While winding down legacy issues a month after AJG acquired Heath, the firm submitted a claim for payment on the reinsurance contract. A year later, Bimeh paid the claim. In 2012, the same year as the claim payment, the U.S. and EU imposed sanctions on Bimeh and Kish Protection and Indemnity Club for providing coverage to Iran's petroleum shipper.
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