By Paul Carsten, Lucy Kramer, Gleb Stolyarov, and Anna Hertenstein

AUCKLAND/LONDON, Oct 28 (Reuters) - Last Christmas, the tanker Yug set sail from the Chinese port of Qingdao after unloading 2 million barrels of sanctioned Iranian oil. Near the Arctic, a ship carrying Russian oil was navigating icy seas toward India. Six thousand miles away, a third ship unloaded its cargo of Iranian oil off the coast of Malaysia.

The three carriers were owned and operated by different entities and served different clients. But they had one thing in common: a small New Zealand-based insurance company backed by some of the world's largest reinsurance companies.

Maritime Mutual is run by 75-year-old British businessman Paul Rankin and his family. For more than two decades, the company has provided insurance coverage for everything from tugs to ferries and cargo ships.

It also helped facilitate tens of billions of dollars in trade in Iranian and Russian oil by providing the insurance needed by ships circumventing Western sanctions to enter ports, according to a Reuters review of thousands of maritime and insurance records, hundreds of oil deals and sanctions lists, and interviews with more than two dozen people familiar with the company.

Many of these vessels belong to what is known in the shipping world as the shadow fleet, which consists of tankers carrying sanctioned goods from countries such as Iran, Russia, and Venezuela, concealing their activity through fake locations, documents, and names.

Maritime Mutual's insurance coverage played a pivotal role in helping the shadow fleet operate despite sanctions aimed at preventing Iran from funding anti-Western armed factions in the Middle East and drying up Russia's funding for its war in Ukraine.

Reuters reports reveal that the company, headquartered in a dark gray office building in Auckland, at one point provided insurance coverage for nearly a sixth of the shadow fleet tankers sanctioned by Western governments such as the United States, the European Union, and Britain.

"This makes them a major player" in the sector, said David Tannenbaum, director of Blackstone Compliance Services, a sanctions consultancy and a former US Treasury Department sanctions expert, commenting on Reuters' findings. "The numbers far exceed those of many of the shadow fleet actors we track, which are leaders in their field."

Reuters and Lloyd's List previously reported that Maritime Mutual provided insurance coverage for a limited number of tankers circumventing sanctions, revealing some details of its ownership and corporate structure. However, this report is the first to document the extent to which the shadow fleet relies on the services of Maritime Mutual and the major Western companies that support it by providing the necessary reinsurance to help it cover potentially huge claims.

New Zealand, along with partners including Australia, the United Kingdom, and the United States, is investigating Maritime's activities amid concerns that it may have helped violate sanctions and failed to meet its obligations to combat money laundering and terrorist financing, according to a person with direct knowledge of the matter. No report on the investigation has previously been published.

In a statement to Reuters, the company said it "categorically denies" any involvement in conduct that violates applicable international sanctions. It emphasized that it follows "zero-tolerance policies" for any sanctions violations and operates according to "strict compliance standards that ensure full compliance with all relevant laws and regulations."

The company did not comment on the New Zealand investigation. Rankin, the company's founder, and his family did not respond to requests for comment.

* Police search the company's offices

As part of their investigation into alleged Russian sanctions violations, New Zealand police searched the headquarters of Maritime Mutual on October 16, according to a second person familiar with the investigation.

The source reported that members of the Financial Crimes Unit seized documents and records during searches at the company's offices in Auckland and Christchurch, as well as a home in Auckland. Police questioned three people, but no criminal charges have yet been filed.

Reuters was unable to identify the three individuals. The company confirmed that police entered its Auckland office on October 16.

In a statement sent to Reuters on October 21, the company's New Zealand branch said its board had decided the previous day not to insure any vessel classified by shipping information specialists Windward and Lloyd's List as part of the shadow fleet, or any vessel transporting Russian oil or Russian refined petroleum products.

The company said that all of its New Zealand subsidiary's activities are sanctions-compliant and that it made this decision due to the significant administrative and regulatory burdens imposed by covering carriers.

Providing services such as insurance to a vessel blacklisted by the West is a violation of sanctions. Many Western governments also prohibit providing services that facilitate the transfer or sale of any prohibited Russian or Iranian petroleum products, even if the vessel itself is not subject to sanctions.

Reuters has not reached any independent conclusions regarding the legality of Maritime Mutual's activities.

The company had previously informed Reuters that it implements rigorous pre-contract screening and verification procedures, including vetting ship owners, ultimate beneficiaries, and the vessels themselves. It added that the contract terms stipulate immediate cancellation of insurance coverage for any vessel or owner if a sanctions violation is suspected.

Reuters was unable to contact the owner of the Yug, formerly known as the Moore, and its operator did not respond to emailed questions. Government officials in Russia and Iran did not respond to requests for comment regarding Maritime Mutual. Russia maintains that Western sanctions are illegal, and President Vladimir Putin has praised Moscow's success in circumventing them.

Reuters' investigation into Maritime Mutual does not provide a complete picture of the company's operations. The agency was unable to identify the hundreds of tankers the company reportedly covers.

Unlike most competitors, Maritime does not provide the public with a way to check whether a vessel is covered by its insurance. Nor does it share this information with major shipping data providers such as Standard & Poor's Global Market Intelligence and Lloyd's List Intelligence.

The company did not comment on why it did not publish a list of the vessels it insures or why it did not share this information with data providers.

Reuters was also unable to identify any clients Maritime Mutual may have suspended after deeming them to be sanctions violators. The company declined to provide the agency with a full list of vessels whose insurance coverage was revoked.

* You cannot sail without insurance.

Maritime Mutual's main insurance offering, known as Protection and Indemnity (P&I) insurance, does not cover the vessel or its cargo, but rather covers the legal liabilities that may be incurred by the vessel owner in the event of unintentional damage to persons, property, or the environment.

While P&I coverage for small tankers can cost tens of thousands of dollars annually, industry sources say it can exceed $200,000 for older and larger vessels, depending on factors such as the vessel's age, size, and owner.

Tannenbaum said that protection and indemnity insurance is essential for the operation of shadow ships. "Without it, the ships will be stuck in the waters. Even Iranian and Russian ports will not allow an uninsured vessel to enter their territorial waters," he added.

Reuters first revealed shipping documents showing that Maritime Mutual insured tankers carrying sanctioned oil during an investigation into how Iran moves crude oil around the world, published in January.

A complete list of the company's clients is not available. However, Reuters has compiled a list of 231 oil tankers covered by Maritime Mutual since 2018, based on a variety of sources: hacked emails from Iranian oil traders detailing their insurance companies, Russian port and customs data, shipping databases, company documents, and industry sources. Reuters shared the list with the Centre for Research on Energy and Clean Air, a Helsinki-based think tank focused on the energy sector.

Of these ships, the Center for Research on Energy and Clean Air identified 130 as carrying Iranian or Russian energy products after sanctions were imposed on Tehran in November 2018 and on Moscow in December 2022.

Using commercial databases of individual oil deals and crude oil prices, the center calculated that vessels insured by Maritime Mutual have shipped at least $18.2 billion worth of Iranian oil and energy products and $16.7 billion worth of Russian energy products since sanctions took effect.

The company often carried 30 or more tankers carrying Iranian and Russian energy products on a single day. On April 1, 2024, the number stood at 41. Reuters recalculated the Center for Research on Energy and Clean Air using the same databases.

Maritime Mutual did not comment on the center's figures. In its statement, the company stated that it obtains certificates proving that ships carrying Russian oil comply with Western sanctions.

"There is no insurance for any vessel that does not fully comply with all applicable sanctions regulations or that exposes the company to sanctions risks... including the vessels mentioned in your inquiry, as well as any vessel carrying Iranian oil," she told Reuters.

Maritime Mutual did not respond to requests to share copies of the certificates. On October 15, the company told Reuters that it now includes a sanctions clause in all insurance quotes, requiring its clients to ensure that vessels comply "fully with applicable sanctions regulations."

Reuters found this wording in a ship's insurance certificate dated March 2025, but did not find it in similar documents for other ships in 2022, 2023, or January 2024.

* The West's blacklist

Maritime Mutual told Reuters in April that it provides insurance for approximately 6,000 vessels. The company explained that oil tankers, vessels designed to transport liquid cargoes such as crude oil, account for about 8 percent of this total, or approximately 480 vessels.

A Reuters review found that several of the vessels covered by the company are now subject to sanctions.

According to Pole Star Global, a maritime data and information company, the United States, the European Union, and other countries have imposed sanctions on 621 Shadow Fleet tankers as of July 31.

Using Lloyd's List's Sea Searcher database and official sanctions databases, Reuters found that 97 sanctioned oil tankers were insured by Maritime Mutual, including 48 that were covered by the company on the day they were blacklisted by at least one Western government. Reuters was unable to determine whether the remaining tankers were insured by the company when they were blacklisted.

When asked to comment on the results, the company said it had cancelled insurance for 92 vessels since 2022 due to their exposure to sanctions.

Reuters was unable to verify this figure, as the company declined to provide a full list of the tankers it insured.

In one case, Washington imposed sanctions on the Hong Kong-owned oil tanker Fenghuang on February 24, 2025. A week later, after arriving at the eastern Russian port of Nakhodka, the ship, formerly known as the Phoenix 1, declared it had insurance cover from Maritime Mutual, according to the data.

The company said it began insuring the tanker on February 14, 2025, and canceled coverage 10 days later when the tanker was subjected to sanctions.

As is common for marine insurance companies, Maritime Mutual's policies include a sanctions clause, which states that they will not cover claims or customers if it exposes them to the risk of violating sanctions.

In a statement to Reuters, the company said that insurance coverage is automatically cancelled if the vessel is deemed subject to sanctions.

Reuters also found that 126 sanctioned companies—either directly or through subsidiaries—owned or operated oil tankers covered by Maritime Mutual at some point. Sixty-one of these were sanctioned, and Maritime Mutual covered at least one of their vessels.

In total, Reuters found that seven oil tankers declared themselves insured by Maritime Mutual after being placed on sanctions lists, according to Russian port data.

One of these vessels, the Sun Sea, formerly known as the Chembulk Tortola, reported that it had an insurance policy from the company that began months after the sanctions were imposed, according to Russian port data and Reuters reports.

The company stated that it began insuring Sun Sea in May 2023, more than two months after Washington imposed sanctions, due to an administrative error. It added that it canceled the policy when it discovered the error a month later.

Reuters was unable to contact the owners and operators of the Sun Sea or Fenghuang, formerly known as the Minerva Xenia, as they could not be reached or did not respond to emailed questions.

Because the company declined to provide details about the tankers it insured, Reuters was unable to verify the authenticity of all the insurance policies it found. Many of the insurance policies for the 231 tankers identified by Reuters had expired and therefore could not be verified, as official shipping registry databases do not provide access to expired policies.

However, Reuters was able to verify the authenticity of documents from seven tankers that confirmed the company was the entity responsible for providing insurance for them, and all of them were correct according to official records databases.

Western sanctions do not prohibit Russian oil exports, provided they are sold below a set price ceiling. This ceiling was set at $60 per barrel in 2022, then reduced by most Western governments to $47.60 in September. This ceiling aims to limit Russia's funding for the war in Ukraine while ensuring the continued flow of Russian oil to avoid a spike in global energy prices.

Reuters was unable to conclusively confirm whether this cap was exceeded for every Russian cargo carried by tankers covered by Maritime Mutual. However, government documents and databases show that 30 tankers sanctioned for carrying Russian cargoes at prices above the cap were covered by the company on the day they were sanctioned.

"Any vessel carrying Russian oil undergoes a thorough assessment and obtains the necessary certifications to ensure compliance with the G7 oil price cap," the company told Reuters, ahead of its October 21 statement confirming it would no longer cover vessels carrying Russian oil products.

The Russian oil price cap guidelines require insurance companies to obtain certification from the parties involved in each oil deal that they have complied with the price cap.

Industry experts say ensuring clients comply with sanctions rules is a challenge. "You're taking their word for it, and that's very difficult for insurers who aren't directly involved in these deals and don't know the actual price of the contract," said Neil Roberts, president of the International Association of Marine Insurance's Policy Forum.

A senior manager at a major insurance brokerage firm noted that the verification process may require companies to employ teams "to continuously monitor each of the thousands of vessels we deal with."

According to Global Fishing Watch, a nonprofit organization that monitors human activity at sea, ships covered by Maritime Mutual that carry Iranian or Russian oil often attempted to conceal their movements.

The organization identified 274 cases between 2021 and mid-2025 in which vessels covered by the company disabled the automatic identification system (AIS) that displays their locations, or manipulated it to transmit false tracking data—common deception tactics used by ship crews to conceal their activities. Maritime Mutual did not comment on the Global Fishing Watch analysis.

"It seems surprising to me that a company from a country that cooperates with US and EU sanctions is providing insurance for so many vessels that deliberately conceal their locations," said Bjorn Bergman, an analyst with the organization.

The United Nations' International Maritime Organization requires large vessels on international voyages to use the Automatic Identification System (AIS), with some exceptions for safety reasons. However, Bergman noted that implementation of this system falls on the countries that issue official registration certificates to ships.

* Sanctions risks for reinsurance companies

Like other P&I insurers, Maritime Mutual reduces the risk of large claims resulting from accidents through reinsurance, a system whereby insurance companies pay a portion of their profits to other insurance companies in exchange for their assistance in covering any claims.

According to directives issued by many Western governments, reinsurance companies are required to comply with sanctions. Walid Taherkli, managing partner at Eldwick Law, a London firm specializing in sanctions, stated that reinsurers dealing with Maritime Mutual could face legal or regulatory action from authorities if they are found to have helped cover vessels that violated international sanctions. The same applies to brokers assisting Maritime Mutual with reinsurance arrangements.

According to Maritime Mutual's website, the company relies on reinsurance companies affiliated with Lloyd's of London, one of the world's largest insurance markets, which includes more than 50 insurance company members.

The list of Lloyd's members hired by Maritime Mutual includes the world's largest reinsurance company, Germany's Munich Re Group, its German counterpart Hannover Re, and British companies MS Amlin and Atrium, according to reinsurance market sources.

A source familiar with the matter told Reuters that the major British-American insurance company, Aon, and the American company, Lockton, acted as intermediaries for Maritime.

Atrium confirmed that it provides reinsurance services to Maritime Mutual. Brokerage firm Eon also stated that the company is a client. MS Amlin announced that it had been cooperating with Maritime but had terminated its relationship, without providing details.

Hannover Re declined to comment, stressing its commitment to complying with international sanctions and that its contracts contain clauses that prohibit coverage for any sanctioned entities.

Arabella Ramage, director of legal and regulatory affairs at the Lloyd's Market Association, declined to comment when asked about Maritime Mutual's reinsurance services. She said the association does not regulate reinsurers and does not have access to their contracts or sanction screening systems.

Lloyds of London and Munich Re declined to comment. Lockton emphasized that it places great importance on its sanctions compliance obligations but cannot comment on specific clients.

* Iran

Rankin, a veteran marine insurance expert, founded Maritime Mutual in Oakland in 2004. The following year, Japan accused the company of providing insurance to North Korean vessels, according to a leaked US diplomatic cable.

According to a later cable, Rankin told a New Zealand official in 2006 that the company no longer insured North Korean vessels. WikiLeaks published both cables. Maritime Mutual did not comment on the contents of the two American cables.

The North Korean mission to the United Nations in New York did not respond to a request for comment. The Japanese Ministry of Transport confirmed that it had not taken any special measures against the company.

Maritime Mutual Group is a family-run business. The team includes Rankin's two daughters, Claire and Sarah, and his son-in-law, Stephen Joyce, according to the company's website, LinkedIn account, and social media pages.

Rankin, his wife Agnes, Claire and Joyce are all directors of Maritime Management Administration Services, a Guernsey company registered in the UK Companies House as the legal director of the UK subsidiary Maritime Pacific Insurance Services.

None of the Rankin family members responded to requests for comment.

According to six people familiar with the company, most of Maritime Mutual's business initially focused on insuring older vessels and smaller fleets at lower premiums than the larger companies, commonly known in the industry as "clubs."

But the company's focus later changed. Eight shipping industry sources familiar with Maritime Mutual's activities reported that it was devoting a significant portion of its business to the shadow fleet.

Maritime Mutual has two subsidiaries in Dubai: MME Services and Maritime Reinsurance. Three people familiar with the matter said the company conducts a significant portion of its shadow fleet business there. UAE authorities did not respond to a request for comment.

In 2016, two years before US President Donald Trump reimposed sanctions on Iran, Maritime Mutual, dubbed by some clients "New Zealand's P&I club," was seeking to attract Iranian companies.

That year, a company presentation appeared on the website of Iranian shipping company Shiraz Marine, promoting its New Zealand headquarters and its decades of experience.

According to a message on the same website bearing the Maritime Mutual logo and signed by Rankin, the New Zealand company authorized Shiraz Marine to promote it in Iran and to nominate clients for insurance coverage starting January 23, 2017.

Shiraz Marine did not respond to emails seeking comment.

Trump reimposed US sanctions on Iranian oil shipments in November 2018. As Western countries sought to strangle oil exports from Iran and later Russia, Maritime Mutual's revenues soared.

According to the company's data, over the 11 years leading up to 2018, its insurance sales increased by an average of 9.5 percent annually, reaching $14.2 million. However, since 2019, after Washington imposed sanctions on Iran, its revenues have jumped by an annual rate of 41 percent, reaching $108.5 million last year.

Revenue growth peaked at 60 percent in 2023, the first full year after Western sanctions were imposed on Russia. Iranian oil exports also rose to $42 billion that year, approaching pre-sanctions levels, according to U.S. Energy Information Administration estimates.

On September 30, 2023, Iranian shipping company Shiraz Marine posted in Persian on its Instagram page that it was the "official representative of the New Zealand P&I Club in Iran."

In response to Reuters' questions, Maritime Mutual strongly denied seeking any business with the shadow fleet. It explained that one of the main drivers of its revenue growth in 2019 was the significant increase in the number of mega-vessels it covered after its reinsurers lifted restrictions on the size of vessels they could insure.

Reuters was unable to identify any cases in which the company paid insurance compensation for claims related to sanctioned vessels or their owners, or to vessels transporting Russian or Iranian energy products.

* New Zealand begins investigation

For two decades, the company remained outside the jurisdiction of New Zealand's insurance regulatory bodies because it was not officially licensed to sell insurance within the country or deal with entities based there.

But on October 8, 2024, the Governor of the Reserve Bank of New Zealand received an email from a member of the country's shipping industry requesting an investigation into Maritime Mutual because the insurer was exploiting its New Zealand location to "impart respectability" to its operations.

The bank responded the next day, "We confirm receipt of the message. The team here will keep you updated."

The message was shown to Reuters on condition that the sender's identity not be revealed.

A source familiar with the investigation told Reuters that the central bank and other bodies are now investigating the company over concerns that it may have facilitated sanctions violations, failed to take adequate measures to protect against terrorist financing, and misrepresented itself as an insurance company subject to New Zealand regulatory standards.

The company did not comment on the investigation or the authorities' concerns.

New Zealand joined the Western coalition imposing a price cap on Russian oil in February 2024. Although New Zealand does not specifically target Iranian oil, it reimposed sanctions on Tehran this month, requiring anyone doing business with Iran, including in the oil sector, to exercise caution.

A spokesperson for New Zealand's foreign minister said he would not provide details on the alleged non-compliance with sanctions on Moscow, but confirmed that agencies were engaging with Maritime Mutual regarding "regulatory matters."

The Ministry of Foreign Affairs stated that it expects "compliance from all New Zealand individuals, businesses, and organizations, regardless of their location or the services they provide." A spokesperson for the Central Bank declined to comment on the bank's enforcement activities.

According to a source with direct knowledge of the investigation, investigators in New Zealand are working with other international partners, including Australia, the UK, and the US.

The US Treasury Department and its Office of Foreign Assets Control, the agency responsible for enforcing economic and trade sanctions on Iran and Russia, did not respond to requests for comment. The US Department of Justice and the European Union declined to comment. The Australian Department of Foreign Affairs and Trade stated that it is aware of concerns regarding Maritime Mutual but will not comment on matters of sanctions compliance.

The UK Treasury did not respond when asked whether it was investigating Maritime Mutual. The ministry also declined a Reuters request for information on the company's compliance with UK sanctions against Iran and Russia.

She said that publishing the information would have a direct negative impact on Britain's relations with members of the coalition that imposes restrictions on Russian oil prices, as well as with other countries. She added that the disclosure could help clarify the extent of evasion of Russian and Iranian sanctions.

The UK Treasury said, "Publishing these details could make it easier for parties with criminal intent to circumvent or evade" sanctions.

The ministry did not respond to subsequent requests for further clarification.

(Prepared by Suha Jado for the Arabic Bulletin)