By Rebecca Delaney

March 20 - (The Insurer) - Environmental campaign group Reclaim Finance has called on Names to take a longer-term view on investment risks at Lloyd’s after its latest analysis found that almost two-thirds of syndicates supported by private capital allegedly underwrite North Sea oil and gas fields and/or LNG terminals.

Reclaim Finance said that Names “are not being told the full story” in terms of the long-term costs of business in the Lloyd’s market and the alleged underwriting of fossil fuel expansion.

The group has compiled a ‘red list’ of 42 syndicates at Lloyd’s that can receive capital from private investors.

Reclaim Finance’s analysis shows that Lloyd’s insurers continue to have more developed underwriting policies for coal infrastructure compared to oil and gas.

All managing agencies for the analysed syndicates were found to have some form of coal exclusion policy, with none of the syndicates found to be currently insuring risks related to U.S. coal mines.

Sixteen managing agencies (operating across 33 syndicates) were found to have a general coal exclusion policy in place, but have not yet ruled out insuring risks related to new coal mines and plants.

These are represented on the list in the orange coal category, and include Asta, IQUW, Atrium, Chaucer, Inigo and Apollo.

Six managing agents (Hiscox, QBE, Tokio Marine Kiln, Beazley, Argenta and Brit) have ruled out insuring all risks related to new coal mines and plants. These are marked on the list in the green coal category.

Argenta Syndicate Management was highlighted as the only managing agency in the cohort that has publicly committed not to insure the construction of both new coal projects and new oil and gas fields.

However, Reclaim Finance alleged that Argenta Syndicate 2121 has been involved in providing insurance to oil and gas companies in the North Sea, and/or U.S. LNG export terminals. Syndicate 2121 therefore has a grey classification on the list rather than green.

According to the list, 11 managing agents currently lack a coherent public oil and gas exclusion policy, with 27 syndicates allegedly involved in insuring oil and gas companies in the North Sea and/or LNG export terminals in the U.S.

The 27 syndicates, representing 64% of the analysed cohort, are marked on the list in the red oil and gas category.

Ten managing agencies were found to have an exclusion policy for oil and gas in place, but have not yet ruled out insuring risks related to new oil and gas fields and new LNG export terminals.

These are represented in the orange oil and gas category and include the managing agencies in the green coal category, with the addition of IQUW, Chaucer, Dale, Arch and Canopius.

“Lloyd's Names trust members’ agents and Lloyd’s to give them the full picture when it comes to the long-term risks of their investments,” said Ariel Le Bourdonnec, insurance campaigner at Reclaim Finance.

“But in reality, their investments are being used to jeopardise that future by supporting the expansion plans of the fossil fuel industry, whether coal, oil or gas.”

He added: “Investors wishing to invest their wealth without fuelling the climate crisis can now ask their members’ agent to reduce or even eliminate their exposure to syndicates still supporting the fossil fuel industry’s expansion plans.”