AIG has joined the U.S. government’s reinsurance guarantee program for vessels transiting the Strait of Hormuz, bringing its participation to a total guarantee pool of $40 billion. The program, which was originally $20 billion, now includes AIG alongside Berkshire Hathaway and other insurers, and is administered by the U.S. International Development Finance Corporation (DFC).
The $40 billion guarantee is structured as a public‑private partnership that provides a backstop to private insurers underwriting war‑risk and maritime coverage. Vessels seeking coverage must undergo a multi‑agency vetting process that includes sanctions screening and detailed disclosures of ownership, cargo, and financing, ensuring that only eligible ships receive protection. The program’s expansion reflects the U.S. Treasury’s confidence in the underwriting and risk‑management capabilities of the participating insurers.
AIG’s recent financial performance underscores its capacity to support this new initiative. In Q4 2025, the company reported earnings per share of $1.96, beating analyst expectations, and its full‑year 2025 adjusted after‑tax income per diluted share reached $7.09, a 43% year‑over‑year increase. AIG’s Core Operating Return on Equity stood at 11.1%, exceeding its target, and the company has returned significant capital to shareholders while maintaining a strong balance sheet.
The partnership places AIG in a high‑risk market segment that offers the potential for substantial premium income and enhances its global reinsurance portfolio. By aligning with the U.S. Treasury’s effort to restore confidence in maritime trade through the Strait of Hormuz, AIG signals its commitment to expanding into strategic, high‑margin opportunities while maintaining underwriting discipline. The move also demonstrates the company’s ability to leverage government guarantees to underwrite large exposures that would otherwise be difficult to price in the private market.
"These leading U.S. insurers bring extensive experience in maritime and maritime war insurance underwriting, enhancing our efforts to restore confidence in maritime trade," said DFC CEO Ben Black. "AIG is pleased to support this effort with risk solutions that will safeguard the resiliency of this important global trade route," added Eric Andersen, President and CEO‑Elect of AIG. "Chubb is proud to lead and manage this program in partnership with the United States Government through the U.S. International Development Finance Corporation. 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," commented Chubb CEO Evan Greenberg. "Reliable insurance capacity matters most in periods of uncertainty. This public‑private partnership brings stability to maritime trade at a critical moment, and we’re pleased to contribute our expertise and financial strength alongside the United States Government through DFC and a strong group of industry partners to support global commerce and U.S. economic interests," said Travelers Chairman Alan Schnitzer.
The inclusion of AIG in the expanded program is expected to strengthen the overall capacity of the U.S. reinsurance market to cover high‑risk maritime operations, potentially lowering war‑risk premiums for shipping companies and encouraging the resumption of traffic through the Strait of Hormuz. For AIG, the partnership aligns with its strategy to grow its global reinsurance business while preserving underwriting discipline, and it positions the company to capture new revenue streams in a critical geopolitical corridor.
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