The U.S. International Development Finance Corp increased its maritime reinsurance capacity to $40 billion by adding $20 billion of backing, expanding participation beyond Chubb to include AIG, Berkshire Hathaway, Travelers, Starr and CNA. The program offers war-risk cover for hull, liability and cargo on vessels transiting the Strait of Hormuz.

Travelers has committed to assume a proportional share of the $20 billion reinsurance backing, underwriting war-related marine exposures under DFC’s detailed eligibility framework, which includes disclosures on vessel ownership, cargo origin and financing arrangements. This marks its entry into the government-backed marine war risk market.

Travelers could see incremental premium revenue and elevated loss potential if shipping activity through Hormuz rebounds, with renewed volumes dependent on regional security developments. Actual premium rates and risk limits will hinge on DFC’s terms and ongoing maritime threat assessments.