Maritime Mutual, the New Zealand insurer at the centre of a police investigation in relation to alleged breaches of the Russia Sanctions Act, is not subject to NZ's insurance law or Reserve Bank oversight, but might be if proposed law changes are passed by Parliament.
The Auckland-based Maritime Mutual featured in a Reuters story this week, which alleged Maritime Mutual has; "helped in the trade of tens of billions of dollars of Iranian and Russian oil by providing vessels skirting Western sanctions with the insurance they need to enter ports."
Maritime Mutual, full name Maritime Mutual Insurance Association (NZ) Ltd, says it “categorically rejects” any suggestion it has “breached applicable sanctions or engaged in conduct designed to circumvent them”.
NZ police say they conducted search warrants in relation to alleged breaches of the Russia Sanctions Act 2022 in mid-October, with inquiries into a NZ incorporated company leading police to execute warrants at company offices in Auckland and Christchurch, and at a residential address in Auckland.
A spokesperson for Foreign Affairs Minister Winston Peters says NZ agencies are aware of the insurer and are “engaging with it actively on regulatory matters.”
Japan's concerns 20 years ago
Maritime Mutual was incorporated in June 2004.
Reuters reports the company was accused by Japan in 2005 of insuring North Korean ships, with Maritime Mutual's founder Paul Rankin telling a NZ official in 2006 it no longer insured North Korean vessels, according to leaked US diplomatic cables published by WikiLeaks.
Peters' spokesperson says Japan asked NZ about Maritime Mutual's legal status and insurance activities in 2005.
“New Zealand advised that Maritime Mutual Insurance Association was a registered company but not a regulated insurer under New Zealand law.”
“While the Minister does not comment on operational matters, we can confirm that New Zealand agencies are aware of Maritime Mutual Insurance Association and engaging with it actively on regulatory matters. However, we are unable to make any further comment," the spokesperson says.
Maritime Mutual's website makes clear it’s not licensed to carry out insurance business in NZ and it is not available to the NZ public.
Its website says it provides protection and indemnity (P&I) insurance, and is “backed by Lloyd’s syndicates and London company market insurers”. Maritime Mutual’s website also says it’s not subject to NZ's Insurance (Prudential Supervision) Act (IPSA).
Rankin has provided an address in Guernsey to the Companies Office, with the NZ company's shareholder, Maritime Mutual Association Ltd, having a Gibraltar address.
The Reserve Bank (RBNZ) regulates and supervises the insurance sector through IPSA, focusing on prudential regulation.
Additionally the Financial Markets Authority supervises insurers' conduct, but says it doesn't license Maritime Mutual so has no involvement with the firm.
A public notice on the RBNZ’s website says Maritime Mutual is not licensed under IPSA and is not supervised by the central bank or any NZ authority.
A spokesperson for the RBNZ told interest.co.nz; “since 2012, Maritime Mutual Insurance Association (NZ) Ltd has relied on an exemption available under the Act to use the restricted word ‘insurance’ in its name”.
“The exemption requires Maritime Mutual Insurance Association (NZ) Ltd to comply with conditions, which were amended by the Reserve Bank on 4 August 2025.
“The conditions were amended to ensure that Maritime Mutual Insurance Association (NZ) Ltd’s status as an unlicensed insurer is clearer to the public and to any of its customers,” the RBNZ spokesperson says.
“The Reserve Bank is unable to comment on our supervisory/enforcement activities relating to individual entities, including any potential investigation activity.”
'Light touch' regulation
Christopher Whitehead, law lecturer at the Auckland University of Technology, says although everybody thinks their country has the worst, most complicated laws in the world, including New Zealanders, this isn't necessarily the case.
“New Zealand regulation is very light touch compared to a lot of places. And if there’s a country in the world where this kind of thing could go on, New Zealand would probably be one of them because New Zealand does not like to overregulate, despite what anybody says,” Whitehead says.
However, changes proposed to IPSA could mean all NZ-incorporated insurers will have to be licensed, with a licensing regime for non-operating holding companies of insurers headquartered in New Zealand also suggested to enable "'group supervision' by the Reserve Bank".
One of the proposed changes is to; "require all New Zealand incorporated insurers to be licensed, whether or not they have New Zealand policyholders."
The RBNZ says Cabinet agreed in August to a set of recommendations to progress an amendment bill to make changes to IPSA.
"We propose to publish an exposure draft of the IPSA amendment bill for public consultation in the first quarter of 2026," the RBNZ says.
Police search
A NZ police spokesperson says in mid-October, officers conducted search warrants in relation to alleged breaches of the Russia Sanctions Act 2022.
The spokesperson says inquiries into a NZ incorporated company led officers from the Financial Crime Group to execute these warrants at company offices in Auckland and Christchurch, and at a residential address in Auckland.
Detective Inspector Christiaan Barnard says police seized records and documents from the offices.
“Three people were detained and spoken to during the search warrants. At this point, no criminal charges have been filed,” Barnard says.
“As this is an active investigation, NZ Police are not in a position to provide further details, however, we are being assisted by partner agencies, both domestically and internationally.”
Peters' spokesperson says potential breaches of NZ law, including of the Russia Sanctions Act 2022 and the United Nations Act 1946, are taken very seriously.
The Ministry of Foreign Affairs and Trade works actively with other agencies such as Customs, Department of Internal Affairs, the Reserve Bank and others “to ensure compliance with and enforcement of sanctions”, the spokesperson says.
“This reflects overlapping agency responsibilities and the complexity of investigations in this area.”
Maritime Mutual 'has not operated illegally or in contravention to sanction law'
In a statement, Maritime Mutual (MMIA) says; “Despite an investigation by Reuters that has lasted several months, and by Reuters’ own admission, MMIA has not operated illegally or in contravention to sanction laws.”
“Reuters further concludes that the investigation does not provide a complete picture of MMIA’s operations, of which tankers previously accounted for approximately 6% of MMIA’s total insured fleet.”
MMIA says it; “does not provide and has never knowingly provided, P&I insurance to vessels transporting sanctioned Iranian or Russian energy products in contravention of New Zealand, UK, EU, US, or other applicable sanctions regimes.”
Any vessel found to be in breach of sanctions or carrying cargo in violation of applicable laws is removed from cover immediately and the flag state is notified within 24 hours of cancellation, MMIA says.
“Out of a total market of circa 1700 vessels which have been designated since sanction records began, 92 vessels were applicable to MMIA P&I cover, all of which were immediately cancelled on designation of sanctions.”
“Any records suggesting continued cover after sanctions are likely to reflect outdated data or declarations made by vessel operators without the company’s knowledge or consent,” MMIA says.
MMIA says; “there’s no suggestion any of our activities have broken international laws.”
MMIA says on October 21, it determined to not provide cover to any vessel which appears on any list of vessels which is identified by Windward or Lloyds list as being in the “shadow fleet” or “dark fleet.”
The term “dark fleet” or "shadow fleet” is a vessel carrying goods that uses tactics to get around international sanctions.
MMIA says it won’t provide cover to any vessel which is carrying Russian origin oil or refined petroleum products, “even if the cargo being carried complies with the international price cap mechanism”.
NZ expands sanctions
On Thursday, Peters announced NZ had expanded its sanctions on Russia’s oil industry and “shadow fleet.”
“New Zealand is sanctioning 65 shadow fleet vessels involved the shipment of Russian oil, a key source of revenue funding Russia’s war of aggression against Ukraine,” Peters says.
NZ has also sanctioned actors from Belarus, Iran, and North Korea, involved in refining and transporting Russian oil, and in facilitating oil-related payments.
“These actors are part of a broader network enabling the trade in Russian oil, undermining global efforts to curtail funding for Russia’s illegal war,” Peters says.
“By targeting the oil supply chain, New Zealand is acting decisively in support of international efforts to bring Russia to the negotiating table.”
Since the Russia Sanctions Act came into force in March 2022, the Government says New Zealand has imposed sanctions on over 1900 individuals, entities, and vessels, alongside a range of trade measures.
1 Comments
About 2 or more years ago, after the Russo Ukraine war had started, the US was still importing Russian fertilisers with no penalty tariffs. I don't know the situation since DT became President for his second term. NZ of course imposed punitive tariffs on Russian fertilisers shortly after the Russo-Ukraine war started.
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