Iran conflict: Chubb to lead $20bn DFC marine reinsurance for Gulf shipping

The US International Development Finance Corporation (DFC) has appointed Chubb as lead insurance partner for a $20bn maritime reinsurance programme designed to restore commercial shipping through the Strait of Hormuz.

Under the plan, Chubb will act as lead underwriter, issuing policies for eligible vessels while working with additional American insurers providing reinsurance capacity alongside the US government backed facility.

The initiative is intended to restore confidence in maritime trade routes disrupted by conflict with Iran.

The DFC scheme is subject to a range of uncertainties, political as well as military.

One senior marine insurance source told GR: “Under normal circumstances, it is thought DFC can set up $10bn but are also supposed to notify Congress.

“That takes two weeks once initiated,” the source added.

DFC was established in 2019, with bipartisan support under President Trump, as the international investment arm of the US Government.

It has a mandate to partner with the private sector to advance US foreign policy and strengthen national security by mobilising private capital around the world.

Since then, DFC has invested across “strategic sectors” including critical minerals, modern infrastructure, and advanced technology, fostering economic development in support of US interests.

Ben Black (pictured, top), CEO of the US International Development Finance Corporation, said the partnership brings together private sector expertise and government financial backing.

“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,” Black said.

“DFC’s Maritime Reinsurance plan combines Chubb’s premier underwriting expertise with the financial commitment of the US Government,” he added.

“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,” Black said.

Evan Greenberg (pictured below Black), chairman and CEO of Chubb, said the programme plays a critical role in supporting global trade.

“Chubb is proud to lead and manage this program in partnership with the United States Government and the US International Development Finance Corporation,” Greenberg said.

“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,” he added.

The DFC facility will provide cover for losses of up to approximately $20bn on a rolling basis.

The insurance will initially focus on hull and machinery and cargo cover for vessels meeting eligibility criteria.

The programme will also involve additional US insurance partners providing reinsurance capacity behind Chubb and alongside the DFC.

Further partners are expected to be announced in the coming days, DFC added.