Chubb CEO Evan Greenberg has defended the company's decision to provide former President Donald Trump with a $91.6 million appeal bond in E. Jean Carroll's defamation case.
Trump was found liable for defaming the writer after she accused him of rape.
Chubb CEO Defends Backing Donald Trump Appeal Bond
In a letter addressed to investors, customers, and brokers obtained by CNBC, Evan Greenberg said that the insurance company's issuance of the appeal bond to Donald Trump had "nothing to do with the underlying merits" of the appeal," or "making judgments about the claim," or favoring any of the parties in the case.
"As the surety, we don't take sides... It would be wrong for us to do so and we are in no way supporting the defendant. We are supporting and are part of the justice system plumbing included in this case," Greenberg wrote in the letter.
Since Trump revealed on Friday that he had obtained the appeal bond from Chubb, the company has been under fire.
Chubb CEO Evan Greenberg's Ties to Donald Trump
Evan Greenberg's ties to the Trump administration, including his appointment as a member of the Advisory Committee for Trade Policy and Negotiations in 2018, have raised questions about potential conflicts of interest.
Donald Trump also named Greenberg and several other business executives and experts to the Great American Economic Revival Industry Groups to help the US recover from the COVID-19 pandemic in 2020.
However, Greenberg defended himself and the company, saying, "We support the rule of law and our role in it. We considered this the right thing to do, and we frankly left our own personal feelings aside."
To mitigate risks, Chubb ensured that Trump's bond was fully collateralized, thereby protecting the company's interests in the event of a payout. Details regarding the collateral used and the premium paid, if anything, by Trump were not disclosed.
Questions have also arisen about whether Trump sought a separate appeal bond from Chubb for a different case. However, according to CNBC, Chubb declined to confirm or deny as "a matter of policy."
E. Jean Carroll can only demand payment from Chubb if the former president loses his appeal of the defamation judgment. The writer cannot still collect on the $83.3 million in damages awarded to her in the case by a Manhattan federal court in January.
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