Chubb will serve as the lead underwriter for the U.S. International Development Finance Corporation's (DFC) $20 billion Maritime Reinsurance plan to provide coverage for ships passing through the Strait of Hormuz amid the ongoing conflict in Iran. The goal of the reinsurance plan. DFC says, is to resuscitate commercial shipping in the Persian Gulf and drive down escalating oil prices.

DFC, the international investment arm of the U.S. government. partners with private entities to generate capital for strategic investments around the world that advance U.S. interests. The department was founded during President Trump's first term.

Chubb and the DFC have reportedly identified several U.S. carriers to provide reinsurance policies to eligible vessels behind Chubb.

"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," DFC CEO Ben Black said in a release. "DFC's Maritime Reinsurance plan combines Chubb's premier underwriting expertise with the financial commitment of the U.S. Government. 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."

DFC has released few details about the maritime reinsurance policies that will be issued or the criteria vessels must meet to be eligible. However, we do know that the insurance coverage will initially focus on hull, machinery and cargo lines.

"Chubb is proud to lead and manage this program in partnership with the United States Government and the U.S. International Development Finance Corporation," Evan Greenberg, chairman and CEO of Chubb, said in a release. "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."

The DFC says it will provide additional details about the Maritime Reinsurance program as they become available. Additional reinsurers may be announced in the coming days.

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