Lloyd’s Apollo Syndicate Management will be ceasing its involvement with the Adani coal mine when the current construction liability policy expires in September next year, bowing to pressure from climate activists.

Shareholder activist group Market Forces says it was informed of the decision in an email from the Lloyd’s syndicate. The syndicate did not respond to a request from insuranceNEWS.com.au for further comment on the action to cut ties with the Queensland mine.

In the email produced by Market Forces, the syndicate says it “can confirm that we participated in one Construction Liability policy in respect of Adani Carmichael”.

“This particular policy terminates in September 2021 after which we will no longer provide any insurance cover for this project.

“We have recently declined to participate in an additional policy relating to the port and rail extension and have agreed that we will not participate in any further insurance policies for risks associated with this project.”

Market Forces campaigner Pablo Brait says the latest pullout by another insurance provider is “encouraging” amid a sustained effort by climate change activists to convince the industry to cut its ties with coal and other fossil fuel businesses.

“We hope to see many more Lloyd’s insurance syndicates make this commitment, particularly Arch, Brit and Hiscox,” Mr Brait said.

“What Adani must now explain to its investors, bankers and contractors is how exactly it plans to insure the Carmichael mine into the future.

“With the mainstream insurers and now the Lloyd's market turning their backs, how will it deal with the significant risks that running a massive coal mine, rail line and port entail? Adani needs to let its partners know what it will do if it cannot find insurance.”

In June, leaked documents published in a newspaper article named three insurers – Liberty Specialty Markets, HDI Global and XL Australia – as being involved in providing insurance for the project.

Liberty later said the article referred to a policy that expired last year, Axa says it has no live insurance for the mine, and both ruled out future involvement. HDI Insurance says it has no direct connection with the project.