Allianz Group is shutting down its aviation insurance business in Australia, The Australian reported Dec. 14, citing a notice to employees.

The business will cease to exist beginning Jan. 1, 2017, according to Willem van Wyk, chief of Allianz Global Corporate and Specialty Pacific, in a letter to staff in November. The group will continue to provide insurance policies for large commercial airlines and operators through its London office.

Allianz underwrites around 3,000 aviation-related insurance policies valued at about A$20 million in Australia.

A spokesman from the firm confirmed the closure and noted that only five positions will be affected by the decision. The spokesman declined to provide the reason for shutting down the business and the value of the policies held by the insurer. The impact on the employees will be staggered over 2017, with possible redeployment for them, the spokesman added.

Allianz's decision to pull out its aviation business from Australia follows its closures of its aviation insurance offices in Singapore, Brazil and Chicago.

As of Dec. 14, US$1 was equivalent to A$1.33.