(1) American International Group UK Limited (2) (As Transferee of AIG Europe Limited) (3) Markel Syndicate Management Limited (4) Talbot Underwriting Limited (4) Berkshire Hathaway International Insurance Ltd (5) Liberty Mutual Insurance Europe SE (6) ANV Corporate Name Limited (7) Arch Insurance (UK) Limited v Qatar Insurance Co. (Branch of a Foreign Company) [2024] DIFC CA 008 (20 September 2024)
The Court held that the Sanctions Clause does not void the entirety of cover but only to the extent that payment or provision of cover would expose the reinsurer to sanctions. On the facts, the only beneficiaries of the reinsurance contracts are the Insurer and the Bank, not Alpine or the Iranian nationals. Payment under the contracts does not constitute a prohibited indirect supply of insurance services to Iran under US law. The appeal fails as the Judge correctly applied the law and facts.
- Citation
- [2024] DIFC CA 008
- Parties
- Claimant/appellant: American International Group UK Limited; Claimant/appellant: Markel Syndicate Management Limited; Claimant/appellant: Talbot Underwriting Limited; Claimant/appellant: Berkshire Hathaway International Insurance Ltd; Claimant/appellant: Liberty Mutual Insurance Europe SE; Claimant/appellant: ANV Corporate Name Limited; Claimant/appellant: Arch Insurance (UK) Limited; Defendant/respondent: Qatar Insurance Co. (Branch of a Foreign Company)
- Jurisdiction
- United Arab Emirates
- Judgment Date
- 20 September 2024
- Procedural Posture
- Appeal / Judgment on Appeal After Trial and Counterclaim
- Outcome
- Appeal dismissed
- Legal Topics
- Sanctions Clauses, Reinsurance Liability, US Sanctions Compliance, Interpretation of Insurance Contracts
Case Brief
Summary, issues, holding and outcome
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Parties
American International Group UK Limited
Claimant/appellant
Markel Syndicate Management Limited
Claimant/appellant
Talbot Underwriting Limited
Claimant/appellant
Berkshire Hathaway International Insurance Ltd
Claimant/appellant
Liberty Mutual Insurance Europe SE
Claimant/appellant
ANV Corporate Name Limited
Claimant/appellant
Arch Insurance (UK) Limited
Claimant/appellant
Qatar Insurance Co. (Branch of a Foreign Company)
Defendant/respondent
Procedural Posture
Appeal / Judgment on Appeal After Trial and Counterclaim
Legal Issues
- 1 Whether US sanctions prohibit payment under reinsurance contracts where the underlying beneficiary is indirectly owned by Iranian nationals
- 2 Proper interpretation and scope of the Sanctions Limitation & Exclusion Clause in reinsurance contracts
- 3 Whether provision of cover or payment constitutes indirect supply of insurance services to Iran under US law
Ratio Decidendi
The Court held that the Sanctions Clause does not void the entirety of cover but only to the extent that payment or provision of cover would expose the reinsurer to sanctions. On the facts, the only beneficiaries of the reinsurance contracts are the Insurer and the Bank, not Alpine or the Iranian nationals. Payment under the contracts does not constitute a prohibited indirect supply of insurance services to Iran under US law. The appeal fails as the Judge correctly applied the law and facts.
Court Disposition
Appeal dismissed
Orders
- Stay of Judgment on the Counterclaim discharged
- Appellants to pay costs of the Application to Respondent on standard basis, subject to immediate assessment
Full Case Text
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