The U.S. International Development Finance Corporation (DFC) announced yesterday that Chubb will serve as the lead partner for DFC’s $20bln Maritime Reinsurance plan designed to resume commercial shipping in the Gulf.
NYSE-listed property & casualty insurer and political risk and maritime insurance provider, Chubb, will act as the lead underwriter issuing policies for eligible vessels.
Together, DFC and Chubb have identified several American insurance companies to provide reinsurance policies behind Chubb and alongside DFC to expand market capacity. Additional reinsurance partners may be announced in the coming days.
The DFC reinsurance facility will insure losses up to approximately $20bln on a rolling basis. This revolving insurance offering will apply only to vessels that meet eligibility criteria. Furthermore, insurance will focus on Hull & Machinery and Cargo to start.
“DFC is pleased to partner with Chubb, one of the world’s leading insurance companies, to help get energy and trade flowing again through the Strait of Hormuz. DFC’s Maritime Reinsurance plan combines Chubb’s premier underwriting expertise with the financial commitment of the U.S. Government. With today’s announcement, we are one step closer to restoring market confidence and resuming energy and commercial trade disrupted by the conflict with Iran,” said DFC CEO Ben Black.
The U.S. will provide reinsurance for losses up to $20bln in the Gulf region, to help restore confidence for oil, gasoline, LNG, jet fuel, and fertilizer shippers during the war on Iran, the U.S. International Development Finance Corporation (DFC) said last week.
“Chubb is proud to lead and manage this program in partnership with the United States Government and the U.S. International Development Finance Corporation. The commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing vessels with insurance protection is essential for resuming trade flows,” said Evan Greenberg, chairman and CEO of Chubb.
Trump offered recently political risk insurance and a US Navy escort of tankers through the Strait of Hormuz.
The White House will offer naval escorts, political risk insurance and guarantees for the financial security of all maritime trade, especially energy, traveling through the Gulf, Trump said, in a bid to cool energy prices that have surged and give maritime shipping companies financial protection amid the war in Iran.
