NEW YORK/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 (NS:ADEL) 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Axis has withdrawn its quotes for insurance of the mine's railway, the source told Reuters.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 (PA:AXAF), Allianz (DE:ALVG), Liberty Mutual Insurance Co, Munich Re (DE:MUVGn), Swiss Re (S:SRENH) and local market leader QBE Insurance Group Ltd (AX:QBE) have already confirmed they will not insure Carmichael, according to lobby group Market Forces.
Sixteen insurers including Chubb Ltd (BN:CB), Australia's QBE and Suncorp Group Ltd (AX:SUN) and European insurers Allianz and Zurich Insurance Group AG (S:ZURN) have already adopted policies to cut their exposure to coal projects, according to lobby group Unfriend Coal.