An insurance provider for the Trans Mountain pipeline says it will not renew its policy with the company when it expires in August.
Argo Group International Holdings Ltd., an international underwriter based in Bermuda, says the project no longer fits the company’s risk appetite.
The decision by Argo Group comes even after the operator for Trans Mountain received regulatory approval to protect the identity of its insurers.
Trans Mountain had argued that identifying its insurers could make it harder to get insurance at a reasonable price and prejudice its competitive position.
Underwriters such as Zurich Insurance Group AG have also dropped Trans Mountain as a possible client, amid pressure from environmental and Indigenous groups against the government-owned pipeline.
Some construction for the pipeline’s expansion project have begun and the company said it is on track to be completed by the end of 2022.