2018-11-07
A notice that American International Group (AIG) is exiting activities in Iran was handled by a company it acquired and is now facing the sanctions imposed by the US administration of Donald Trump on Tehran.
 
The company's Nov. 2 notice said Bermuda-based Reed Insurance Holdings, which was acquired by American International Group in July for $ 5.56 billion, reduced its insurance coverage for shipping companies transporting goods from and to Iran.
 
The notice noted that these shipments include crude oil from Iran and refined petroleum products transferred to it.
 
US President Donald Trump has withdrawn his country from a nuclear deal signed in 2015 between Iran and six world powers aimed at restricting Iran's nuclear weapons program and ordering a re-imposition of sanctions on Tehran.
 
The United States on Monday re-imposed sanctions targeting oil, banking and transport sectors and threatened further steps to halt its "outlaw" policies in steps Iran has described as an economic war and vowed to tackle.
 
European insurance, reinsurance, brokerage and shipping companies have been scrapping their business in Iran since May as the United States prepares to re-impose sanctions on insurance and reinsurance companies on November 4.
 
American International Group said that its subsidiaries outside the United States are engaged in insurance related to Iran, including insurance coverage for ships and cargoes.
 
The company announced that it was also exiting some of the reinsurance documents related to Iran.
 
The notice said the company received a license from the US Foreign Assets Control Office in July to allow it to exit its work related to Iran. The company said insurance-related income was limited to Iran