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Axis Capital quits coal, oil sands

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Specialty lines insurer Axis Capital will stop underwriting and investing in businesses involved with the coal and oil sands-related industries in January.

The Bermuda-based business will not provide new insurance or facultative reinsurance for new thermal coal plants or mines and their related infrastructure. The same policy applies to oil sands extraction and pipeline projects.

The new policy applies also to companies generating at least 30% of revenues from coal mining, source 30% or more of its power from the fossil fuel or have oil sands exceeding 20% of overall reserves.

“We believe insurers have an important role to play in mitigating climate risk and transitioning to a low-carbon economy,” CEO Albert Benchimol said.

“This policy is in line with our broader strategies such as reducing investments in lines that do not align with our long-term approach…and growing our corporate citizenship program, a core focus of which is creating a positive environmental impact.”