Allianz Global and Corporate Specialty (AGCS) will no longer underwrite hull and marine liability insurance in North American and Asia.
The German insurance giant announced Wednesday that it will consolidate domestic and international marine underwriting in London, Paris and Hamburg to improve profitability and "consolidate expertise at the scale that is needed to service customers effectively."
The changes take effect immediately, though it impacts renewal customers from 1 February.
AGCS said it would continue its marine cargo segment, though it would route all Asia Pacific business through a hub in Singapore. It will continue the North American inland marine business.
AGCS is a global marine insurance provider but the North American market is important for the company. Head of global marine Ulrich Kadow is based in Toronto.
But the marine sector has struggled with over capacity and declining premiums over recent years and AGCS is the latest in a growing number of leading international specialty insurance providers to scale back on their marine business.
Earlier this Autumn, Swiss Re said it would quit the marine cargo insurance market and concentrate its other marine lines, including hull and machinery, in Genoa.
As many as 30 marine insurance providers are reported to have either quit the marine market or scaled back on their business over the past 18 months.
A long running soft market in marine insurance business lines has also made the sector an obvious area for cut backs as insurance companies attempt to recover their balance sheets which were hit by a series of natural catastrophes.
AGCS had reported a fall in profits earlier this year and chief executive Chris Fischer Hirs was reported in Germany to be set to leave the firm earlier this month.
