A London-based human rights group working to discourage firmsfrom operating in Burma said two insurers among a group ithighlighted for dealing with that nation are pulling out of thecountry.

Burma Campaign UK said today that XL and Chubb have separatelyannounced the withdrawals in statements to the campaign. Chubb saidthe Burma Campaign information was erroneous and it was not doingbusiness in Burma.

Three weeks ago Burma Campaign published a report, "InsuringRepression," charging that insurance companies have facilitated theflow of billions of dollars to the military junta that controls theMyanmar government.

XL was among firms on the organization's "Dirty List" for doingbusiness in Burma, and Chubb was on its "Shamed List" of companiesthat it said would not reply about policy on Burma or state they donot provide insurance there.

According to Burma Campaign, Bermuda-based XL Capital statedthat the company now has a policy that it will no longer "seek toinsure Burmese companies or operations of companies in Burma."

XL, in a statement when asked for comment, said its "companiesand employees comply with all relevant sanctions in thejurisdictions in which we operate. Some limited insurance waswritten through our Lloyd's platform, XL London Market, which hadalready decided not to write any insurance of Burmese entitiesgoing forward. We are not aware of any other XL company havingunderwritten any Burmese company; equally, XL does not have anyfronting agreement in Burma and does not seek to insure Burmesecompanies or operations of companies in Burma."

XL Capital, Burma Campaign noted, owns both reinsurer XL Re anda large Lloyd's of London syndicate, XL London Market, which has inthe past insured a Burmese regime owned airline.

Burma Campaign has leveled particularly heavy criticism atLloyd's for refusing to drop operations in Burma.

Chubb Corp. in Warren, N.J., the Burma Campaign said, told theorganization that after conducting an internal review it now "barsits member companies from maintaining an office in Burma, fromdirectly writing insurance in Burma, or providing insurance intoBurma from outside the country."

Chubb, the group said, was placed on its Shamed List after thecampaign obtained company documents showing it maintained an officein Burma.

However, Chubb said its policy, which has been in effect for atleast 11 years, bars its member companies from maintaining anoffice in Burma, directly writing insurance in Burma, providinginsurance into Burma from outside the country, or entering into anytransaction with the government of Burma.

"The action by The Burma Campaign UK was based on anout-of-date, erroneous list of independent service providers onChubb's Web site, which has since been corrected. We have soinformed The Burma Campaign UK and asked them to amend thecharacterization of Chubb on their Web site," Chubb said in astatement.

"This is a major embarrassment to Lloyd's of London; they havenever taken this issue seriously and don't see any problem withhelping to finance Burma's brutal dictatorship," Johnny Chatterton,Campaigns Officer at the Burma Campaign UK, said in astatement.

A Lloyd's spokesperson said Aug. 5 that "a very small amount ofreinsurance is written at Lloyd's in Burmese shipping and aviation.We are unaware of any businesses at Lloyd's defying internationalsanctions. If we discovered any underwriters breaching sanctions,we would take action immediately."

Earlier Lloyd's issued a statement saying it does not comment on"politics or economic policies of national or international bodies"and "unless there are official U.N. sanctions in place, Lloyd'sdoes not instruct the market where it can and cannot writebusiness."

"Lloyd's is increasingly isolated and is seeing its reputationdamaged as more and more insurers take an ethical stance againstdoing business with a regime that routinely persecutes, detains,tortures and murders those who want human rights and democracy,"said Mr. Chatterton.

Burma Campaign included a statement from Maung Maung, GeneralSecretary of the Federation of Trade Unions Burma, saying:"Insurance companies are facilitating trade and investment inBurma, filling the pockets of the generals and helping keep them inpower.

"We welcome the news that XL and Chubb have pulled out and willno longer help to fund the regime, but we strongly condemn allinsurers that remain involved in our military junta run country.They help keep the generals in power and condemn Burma's 50 millionpeople to lives of poverty and fear. There is no excuse for thelikes of Lloyd's of London being involved; they are helping to funda brutal dictatorship."

Burma Campaign noted a British Government policy statement that"the U.K. Government discourages trade and investment withBurma."