Allianz, AXA and SCOR quit UN climate alliance as insurers hold talks

FRANKFURT/LONDON (Reuters) – A U.N.-convened climate alliance for insurers was holding talks on Thursday to decide if it had a future after three more companies – Allianz (ETR:), AXA and SCOR – quit in the face of growing political opposition in the United States.

Of the eight founding members of the Net-Zero Insurance Alliance (NZIA), which launched in 2021, at least five have now left. AXA Group Chief Risk Officer Renaud Guidée had chaired the alliance but the French insurer said in a statement it was leaving to “continue its individual sustainability journey.”

NZIA is part of the Glasgow Financial Alliance for Net Zero set up by U.N. climate envoy Mark Carney and it requires members to commit to reducing their greenhouse gas emissions.

The group has been buffeted by growing political opposition from some Republicans in the United States, who say the group could be violating antitrust laws.

This month 23 U.S. state attorneys general told NZIA members that the group’s targets and requirements appeared to violate both federal and state antitrust laws. They gave insurers a month to respond in a May 15 letter seen by Reuters.

Swiss Re (OTC:) announced its exit on Monday, following Munich Re, Zurich Insurance and Hannover Re in leaving. All of these insurers have significant U.S. business or exposure.

Allianz said in an emailed statement on Thursday it had decided to leave the NZIA, and said it would stick to its own climate goals.

SCOR’s new CEO announced its exit at its annual general meeting earlier on Thursday. A spokesman for SCOR declined to provide any reason for the departure.

Legal experts have told Reuters that it would be difficult to make a legal case using antitrust rules against a company collaborating on tackling climate change through an alliance. But the political backlash in parts of the United States had made insurers particularly sensitive to such accusations, they say.

Lloyd’s Chief Executive John Neal told Reuters on Wednesday the alliance needed to make its membership rules less prescriptive or risk falling apart.