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Lloyd's of London insurer Axis Capital drops bid to cover Carmichael mine - source

Lloyd's of London insurer Axis Capital drops bid to cover Carmichael mine - source
FILE PHOTO: Signage is seen inside the Lloyd's of London building in the City of London financial district in London, Britain, April 16, 2019. REUTERS/Hannah McKay -
Hannah Mckay(Reuters)
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NEWYORK/LONDON (Reuters) – Lloyd’s of London insurer Axis Capital has become the latest to rule itself out of providing coverage for Adani Enterprises Ltd’s <ADEL.NS> contentious Carmichael coal mine project in Australia, a source close to the company said on Wednesday.

Axis has withdrawn its quotes for insurance of the mine’s railway, the source told Reuters.

The insurer will publish a formal policy to cut its exposure to coal more broadly in the weeks ahead, the source added.

Axis joins a growing list of global insurers to refuse to insure the project, which received the green light from Canberra in June despite fierce opposition from environmental groups.

The Queensland-based Carmichael mine is expected to chalk up annual production of 8 million to 10 million tonnes of thermal coal, responsible for a large slice of the world’s carbon emissions.

As a result, 14 large insurers including AXA SA <AXAF.PA>, Allianz <ALVG.DE>, Liberty Mutual Insurance Co, Munich Re <MUVGn.DE>, Swiss Re <SRENH.S> and local market leader QBE Insurance Group Ltd <QBE.AX> have already confirmed they will not insure Carmichael, according to lobby group Market Forces.

Sixteen insurers including Chubb Ltd <CB.BN>, Australia’s QBE and Suncorp Group Ltd <SUN.AX> and European insurers Allianz and Zurich Insurance Group AG <ZURN.S> have already adopted policies to cut their exposure to coal projects, according to lobby group Unfriend Coal.

(Reporting by Suzanne Barlyn, Simon Jessop and Carolyn Cohn; Editing by Lisa Shumaker)

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