US Boosts Strait of Hormuz Reinsurance to $40B, AIG Joins Insurers
US commitment increases by $20B to $40B reinsurance guarantees for Strait of Hormuz shipping, with AIG joining five other insurers including Berkshire Hathaway and Chubb. Underwriting facility aims to restore maritime traffic flow stalled by Iranian blockade, expanding AIG’s marine war coverage exposure.
1. Program Expansion
The US International Development Finance Corp. has doubled its maritime reinsurance guarantee facility to $40 billion by adding five insurers—AIG, Berkshire Hathaway, Travelers, Liberty Mutual, Starr and CNA—alongside existing partner Chubb to support vessels transiting the Strait of Hormuz.
2. AIG's Underwriting Role
AIG will participate in marine and war risk underwriting for ships willing to navigate a route disrupted by Iranian threats, sharing risk exposure across high-value cargoes such as oil and liquefied natural gas.
3. Strategic Impact and Criteria
Applicants must disclose vessel origin and destination, beneficial ownership, cargo details and financing structure to qualify, as the program seeks to revive roughly 20% of global energy flows and bolster AIG’s specialty lines business.