Trump Administration Provides "Sovereign Backstop" Reinsurance Facility for Persian Gulf Maritime Shipping

On Mar. 6th, President Donald J. Trump issued, “effective immediately”, a directive ordering the U.S. International Development Finance Corporation (“DFC”) to act as a federal “sovereign backstop” for qualified private insurance companies providing Hull & Machinery and Cargo coverage to shipping companies operating in the Persian Gulf. The backstop will take the form of a $20 billion reinsurance facility (“Reinsurance Facility”) available to qualified private insurance companies, as well as shipping lines. While the official list of qualified insurers has not yet been issued, Chubb, AIG, Liberty Mutual, and, significantly, Lloyd’s of London acknowledged active participation in negotiations with the...