Serious Fraud Office charges Lloyd’s broker over bribery

The Serious Fraud Office (SFO) has accused a UK insurance company regulated by Lloyd’s of failing to prevent international bribery.

An entity of UIB Group was charged with allegations of failing to prevent associates from bribing state officials in Ecuador between October 2013 and March 2016.

The anti-fraud agency alleges that United Insurance Brokers Limited (UIBL), US-based intermediaries for Ecuador, paid bribes in return for the awarding of re-insurance contracts worth $38m.

UIBL is the head office of UIB Holdings (UIB Group) and serves clients in 85 countries.

The SFO said UIBL offered re-insurance services, which cover insurers against losses caused by significant and unexpected payouts on insurance policies.

The policies were sold to State insurers covering parts of the Ecuadorian public sector, including the state water and electricity companies.

The Lloyd’s broker has been accused of receiving $6.2m in commission to provide these services, of which $3m was allegedly paid to intermediaries.

The broker is accused of subsequently paying bribes to an Ecuadorian official in exchange for the contract.

Representatives of UIBL have been ordered to appear before Westminster Magistrates on Wednesday 7 May to face the charges.

Commenting on the decision, Nick Ephgrave, director of the SFO, said: “The SFO remains committed to stamping out international bribery wherever it may occur.”

“British companies have a duty to prevent the harm caused by bribery when doing business at home and abroad, to ensure that the UK remains a safe and fair place to do business,” he added.

Lloyd’s declined to comment. UIB Group has not responded to a request for comment.