Proactive Investors - Allianz (ETR:ALVG), AXA (LON:0HAR) and SCOR (LON:0IT3) all announced departures from the Net Zero Insurance Alliance (NZIA) on Thursday, following political pressure in the US and fears over antitrust laws.
Each gave limited reasoning for quitting the alliance, which operates under the umbrella of the Glasgow Financial Alliance for Net Zero (GFANZ), and join a growing wave of fleeing firms.
The trio of European insurance giants each hinted they would continue to pursue climate goals individually, echoing similar comments from Zurich, Swiss Re, Munich Re and Hannover Re, which all left the group previously.
Members of the NZIA, which was set up under GFANZ in 2021 by ex-Bank of England governor Mark Carney, have faced pressure from US Republican politicians over climate commitments, alongside fears of competition lawsuits such as collusion.
“Every company has the freedom to join or withdraw from the NZIA at any point in time and for any reason,” the United Nations said prior to Thursday’s departures.
“Regardless of the situation, […] in order to successfully tackle the climate emergency, there is a fundamental and urgent need for collaboration, not just individual action.”
Reclaim Finance analyst Patrick McCully commented: “As the Net-Zero Insurance Alliance disintegrates before our eyes, we must ask why these huge companies with their hordes of lawyers did not see antitrust issues [before].”
“We must wonder whether their ditching of the alliance has more to do with fears of losing business in the US than real legal jeopardy.”
NZIA was left with 23 members as of Friday morning, including Aviva (LON:AV), Lloyds of London and Qbe (ASX:QBE), following seven high-profile departures in recent months.