Allianz SE
ALV,
doesn’t intend to renew a policy providing insurance cover for the Nord Stream pipeline when it expires later this year.
The German insurer made the disclosure in a statement posted on its website late Wednesday, saying the company was part of an insurance consortium providing technical engineering insurance cover for the operations of the Nord Stream pipeline that only relate to the four European-based minority shareholders of operator Nord Stream AG in Switzerland.
“This policy was underwritten prior to the Russian invasion of Ukraine for a two-year period and we are under contractual obligation to our policyholders subject to all sanctions,” Allianz said.
The company has been complying with all sanctions, Allianz said, including those issued following Russia’s invasion of Ukraine.
The announcement comes after Reuters reported earlier this week that Allianz and Munich Re AG were among European insurers that had renewed cover for the damaged Russian-controlled Nord Stream gas pipeline.
Last year, a series of underwater explosions tore apart three of the four main Nord Stream pipes built to carry natural gas from Russia to Germany.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
This post was originally published on Market Watch
