Lloyd’s underwriters seek to halt £45m legal cover for Petrofac bribery defendants
A group of Lloyd’s syndicates have sought to block £45m in defence funding for two former Petrofac executives facing a criminal bribery trial. The group of syndicates provided directors’ and officers’ (D&O) insurance coverage to Petrofac’s former chief operating officer, Marwan Chedid, and former chief operations officer George Salibi. Chedid and Salibi rely on Petrofac’s [...]
Nine insurance firms, including Lloyd's syndicates Samford Underwriting and Gracechurch UTG, appealed a High Court ruling that forced them to continue providing £45 million in defence funding for two former Petrofac executives facing a bribery trial. The Lloyd's underwriters filed a claim in August to withdraw the coverage, arguing that the alleged fraud violated the policy.
However, Mr Justice Jacobs ruled in September that the insurers cannot withhold funding unless the bribery allegations are proven in court. The case, involving SFO charges brought against Marwan Chedid and George Salibi in February 2024, is significant for the insurance industry, white-collar criminal defendants, and defence practitioners.
Petrofac pleaded guilty on October 4, 2021, to seven counts of failing to prevent bribery under the UK Bribery Act. The trial, initially scheduled to begin on November 2, will now commence on November 23 at Southwark Crown Court.
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