The facility offers up to US$200m each for hull and P&I risks, alongside US$200m of dedicated cargo cover, as the market responds to the planned phased reopening of the waterway.
The vehicle will support business from the firm’s Portfolio Solutions team, which targets opportunities from its MS&AD network and Lloyd’s initiatives.
The facility, which aims to provide coverage of US$500m each for hull war and cargo war, will be backed by Lloyd's syndicates and will remain open to third-party capital.
Softer conditions, strong M&A activity, and improved market infrastructure should drive renewed deal momentum following a 2024-2025 slowdown, according to the broker.
Market participants flag that DIFC facility may lead to potential withdrawal of private insurers, while operational risks could continue to restrict vessel movements in the Strait of Hormuz.
