Chubb details $20 billion maritime facility with DFC

Chubb Limited (NYSE: CB) outlined the structure of a maritime insurance facility created with the U.S. International Development Finance Corporation, according to a company statement. The DFC announced Chubb as lead underwriter for its $20 billion Maritime Reinsurance plan on March 11.

Under the arrangement, Chubb will manage the facility, determine pricing and terms, assume risk, and issue policies for eligible vessels and cargo. The company will also handle all claims management. The DFC will coordinate a consortium of American reinsurers and establish criteria for ships accessing the program.

The facility will provide war marine risk insurance covering hull and liability as well as cargo. Coverage includes war hull risk insurance, war protection and indemnity insurance, and war cargo insurance. The insurance will be available to vessels meeting U.S. Government eligibility criteria and applies to ships transiting the Strait of Hormuz under certain conditions.

The initiative represents a public-private partnership between DFC, Chubb and other American insurance companies serving as reinsurers. Participating insurers bring underwriting experience in marine and marine war coverage. Additional American insurance companies involved in the consortium will be disclosed in coming days.

Chubb operates in 54 countries and territories, providing commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance. The company employs approximately 45,000 people worldwide and trades on the New York Stock Exchange as a component of the S&P 500 index.

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