Despite strong opposition from some
quarters, Californian insurers appear to be heeding California
insurance commissioner Steve Poizner’s order that they sell
Iran-related shares in their portfolios.
The order targets 50 companies the California
Department of Insurance (CDI) has identified as doing business with
Iran’s nuclear, energy and defence sectors in the first quarter of
2010.
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According to the CDI, a detailed analysis
revealed that, at the end of 2009, insurers licensed to do business
in California held $2bn of investments in the 50 companies.
As of 31 March 2010, those holdings had
decreased to $1.6bn. Prior to what the CDI termed ‘Commissioner
Poizner’s initiative’, insurers were found to have doubled their
investment in Iran-related companies to $2bn.
Poizner announced his ‘Terror Financing Probe’
in June 2009 to review compliance with a recently-enacted
California law that prohibits insurers from investing in what the
state designates as “state sponsors of terror”.
