LONDON, April 11 (Reuters) - The Lloyd's of London

insurance market's environmental, social and

governance standards are weak, as its members have exposure to

fossil fuel projects and weapons, non-profit ShareAction said in

a report on Thursday.

Lloyd's, one of the world's biggest commercial insurers, is

made up of more than 50 member firms, and has some regulatory

oversight over them. Its ESG guidance to its members was

inadequate, the report said.

Lloyd's came third from bottom in a table of 29 global

property and casualty insurers for responsible underwriting and

investment performance. In a separate tally of 13 large Lloyd's

members' underwriting standards, six scored F, the lowest grade.

Insurers recorded their performance on up to 30 metrics on

issues including whether they have net zero targets, restrict

the underwriting of oil and gas or exclude investment in

weapons and tobacco.

None of the 65 insurers surveyed by ShareAction achieved the

top A grade.

"The insurance sector is showing less good performance on

responsible finance than either our asset management or our

European banks benchmarks," ShareAction's head of financial

sector research Claudia Gray told Reuters.

French insurer AXA topped the property & casualty

league table, while Japan's Sony Financial Group came bottom.

France's CNP Assurances led the life and health ranking, and

the U.S. firm Protective Life Insurance came last.

Lloyd's syndicate member AXA XL also led among Lloyd's

insurers, while Aegis trailed.

AXA said the insurer regularly updated its investment and

underwriting policies "to align with its broader climate and

sustainability ambitions".

A CNP Assurances spokersperson said its ranking showed the

insurer's "long-term commitment to a responsible investment

policy that respects climate, biodiversity and society".

Cory Kutcher, vice president of sustainability for

Protective, said the insurer was "proud of the work we do to

advance sustainability throughout our business".

Aegis said its underwriting performance has improved in the

last 20 years.

"In 2005, energy represented 60% of our portfolio by

premium. Today it represents less than 10%, all of which is

written in accordance with applicable Lloyd's requirements and

guidelines," an Aegis London spokesperson said.

Lloyd's and Sony Financial did not immediately respond to

request for comment.