U.S. International Development Finance Corporation (DFC) and Chubb revealed that six additional U.S. insurance partners will provide reinsurance for DFC’s maritime reinsurance program: Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr and CNA.
As previously reported, Chubb was appointed lead partner of DFC’s $20 billion marine reinsurance program in March.
Under the expanded structure, Chubb and the newly announced partners will contribute an additional $20 billion in capacity on top of the existing $20 billion in rolling coverage, increasing total marine reinsurance to $40 billion.
The facility will provide wartime risk insurance for hull and liability as well as cargo. Underwriting war hull risk insurance, war P&I insurance and war cargo insurance.
According to DFC, the initiative is designed to support President Trump’s directive to restore maritime trade in the Strait of Hormuz, stabilize international commerce, and support U.S. and allied businesses operating in the Middle East amid the ongoing conflict with Iran.
DFC CEO Ben Black commented: “DFC is proud to welcome Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr and CNA as additional reinsurance partners for our US$40 billion joint marine reinsurance program.
“Together with Chubb, these leading U.S. insurers bring deep underwriting experience in marine and marine war insurance, strengthening our efforts to help restore confidence in maritime trade.”
“Chubb is proud to lead and manage this program in partnership with the U.S. government through the U.S. International Development Finance Corporation,” said Chubb CEO Evan Greenberg.
Commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing insurance protection for ships is critical to restoring the flow of trade. “
Alan Schnitzer, Chairman and CEO of Travelers, added: “In uncertain times, reliable insurance capabilities are most important. This public-private partnership brings stability to maritime trade at a critical time, and we are pleased to contribute our expertise and financial strength to the U.S. government through DFC and a strong group of industry partners to support global commerce and U.S. economic interests.”
“As a market leader in specialty insurance and risk advisory services, we are involved in the mobilization of this facility to help support the resumption of maritime trade,” noted Tim Sweeney, Chairman, President and CEO of Liberty Mutual Insurance.
Ajit Jain, vice chairman of Berkshire Hathaway Insurance Operations, said: “We are very pleased to support Chubb and DFC in this initiative, and we commend all reinsurers for stepping up and demonstrating how our industry can help meet the important needs that have emerged.”
“This initiative demonstrates how public and private partners can work together to address real-world risks,” said CNA Chairman and CEO Douglas M. Worman. “CNA is proud to contribute our maritime underwriting expertise in partnership with other industry leaders.”
Eric Andersen, President-elect and CEO of AIG, commented: “The U.S. Government’s mission is to provide critical insurance capabilities through the DFC to ships operating in the Strait of Hormuz, which is critical to supporting global commerce and stability. AIG is pleased to support this effort with risk solutions that safeguard the resiliency of this important global trade route.”