By Anita Hamilton
Several days after announcing a $20 billion backstop aimed at encouraging private insurers to underwrite ships passing through the Strait of Hormuz amid the Iran war, the U.S. announced Wednesday that Chubb has signed up to be the lead insurer for the program.
Chubb "will act as the lead underwriter issuing policies for eligible vessels." Meanwhile the U.S. Development Finance Corporation, which supports the government's international development efforts, will continue to reinsure the program while working to bring on other partners "in the coming days," the DFC said.
The Strait of Hormuz, a narrow waterway linking the Persian Gulf to the Gulf of Oman that is crucial to the transport of one-fifth of global oil supplies, has been effectively closed since the conflict erupted last month. There are fears about mines planted in the strait and attacks on ships there.
Earlier Wednesday, three commercial ships were struck near the strait, The Wall Street Journal reported.
"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," Chubb CEO and Chairman Evan Greenberg said.
The DFC reinsurance plan will insure losses up to $20 billion collectively on a rolling basis for eligible vessels. It will focus on cargo and hull and machinery to start.
Chubb shares were mostly flat Wednesday. They are up about 15% over the last 12 months, versus the S&P 500's 21% gain.
Write to Anita Hamilton at anita.hamilton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 11, 2026 14:43 ET (18:43 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments