US launches $20 bn reinsurance plan to secure oil shipments
The US International Development Finance Corporation has announced a $20 billion maritime reinsurance programme to stabilise shipping through the Strait of Hormuz amid escalating tensions involving Donald Trump’s administration.
The facility will provide war-risk coverage for vessels operating in the Persian Gulf, insuring losses up to $20 billion on a rolling basis. The move aims to restore confidence among shipowners as traffic through the crucial waterway has slowed significantly due to security concerns following attacks linked to the US and Israel on Iran.
The Strait of Hormuz accounts for nearly one-fifth of global oil flows, making disruptions a major concern for global energy markets. Despite continued availability of private insurance from firms such as Lloyd’s Market Association, shipowners have remained reluctant due to safety risks for crews.
The programme, developed in coordination with the US Treasury and military command, is expected to encourage resumption of trade flows and ease pressure on oil prices.
Marine insurers insist they will support trade in the Middle East
The global marine insurance market is continuing to provide cargo, hull, liability and offshore energy cover despite escalating geopolitical tensions in and around the Middle East, with insurers generally adjusting terms and pricing rather than withdrawing capacity, according to a statement from the International Union of Marine Insurance (IUMI).
Industry analysts have warned that the current phase could still become a “very sizable event” for the marine segment if conflict or sanctions trigger large-scale losses, given how concentrated the class is compared with broader non-life business.
Moody’s Ratings recently highlighted marine exposure as a key channel through which the Middle East conflict could affect insurers. The Persian Gulf and Strait of Hormuz remain “a key shipping route to export oil and gas”, and vessels in the region “are typically insured by insurance companies or reinsured by reinsurance companies”, leaving the sector clearly exposed.
Lloyd’s follows PartnerRe into India reinsurance hub
Reinsurers are expanding in India despite a CRT-4 risk rating from AM Best, with Lloyd’s of London joining PartnerRe Ltd. in establishing operations in GIFT City.
India’s CRT-4 designation indicates moderate economic risk and high political and financial system risk, according to AM Best. At the same time, the rating agency has maintained a stable outlook for the country’s non-life insurance segment, citing demand trends and regulatory developments reported in January 2026.
Recent policy changes point to a shift in market access. Legislative reforms passed in December 2025 propose removing the foreign direct investment cap for insurers, allowing up to 100% foreign ownership under the automatic route, subject to notification and conditions. The reforms also reduce capital requirements for foreign reinsurers and Lloyd’s entities from Rs. 50 billion to Rs. 10 billion, aligning thresholds across jurisdictions and lowering entry requirements.
Motor segment lifts China’s PICC earnings
China’s PICC Property & Casualty Group reported higher full-year 2025 net income, driven by strong motor vehicle insurance results, even as its liability, agriculture, and commercial property segments posted underwriting losses, according to its annual report.
Profit for the year rose to 40.38 billion yuan ($5.85 billion) from 32.16 billion yuan in the prior year. Insurance revenue climbed to 511.59 billion yuan from 485.22 billion yuan, a 5.4% increase. The group’s combined ratio improved to 97.5 from 98.8. PICC said underwriting profit advanced 119.4% for the year.
“We pursued steady progress with improvement in operating results,” chairwoman Ding Xiangqun stated. “In 2025, faced with a complex and challenging development environment, the company rose to the challenge and pressed ahead, strengthening our core functions and competitiveness, withstanding multiple risks and tests, and delivering development results that were steady and improving.”
China Life posts 44% profit rise
China Life Insurance (Group) Co. has reported a 44.1% increase in full-year 2025 net profit, driven by a rise in gross written premiums and in gross investment income.
Net profit attributable to equity holders reached 154.08 billion yuan (US$22.35 billion), up from 107 billion yuan a year earlier. Gross written premiums rose to 729.89 billion yuan from 671.46 billion yuan, while gross investment income climbed to 387.69 billion yuan from 308.25 billion yuan. Total revenues surged 16.5% to 615.07 billion yuan.
China Life reported an 8.7% rise in gross written premiums for 2025, led by first-year regular premiums. The company highlighted long-term competitive advantages, noting that policies with a payment duration of 10 years or longer accounted for 44.9% of all first-year premiums, and over 58% in the individual agent channel.
The group said it further diversified its product mix in 2025. Premiums from new life insurance accounted for 31.8% of the portfolio, annuity insurance premiums made up 32.1%, and health insurance premiums comprised 31.2%, AM Best reported. The value of 2025 sales rose 35.7%, as China Life said it prioritised business value and profitability.
Singapore general insurance premiums top SG$6 billion
Singapore’s domestic general insurance sector surpassed the SG$6 billion mark for the first time in 2025, even as rising motor and property claims pushed total payouts to SG$1.8 billion, according to new figures released by the General Insurance Association of Singapore (GIA).
Gross written premiums for the domestic segment reached SG$6.09 billion, an 8.4% year-on-year increase. Combined with the offshore segment, total gross written premiums rose 3.7% to SG$11.2 billion.
Net incurred claims for the domestic segment climbed 8.7% year-on-year, an increase of SG$144.2 million compared to 2024. Despite the higher claims environment, underwriting profit rose 32% to SG$289 million, up from SG$219 million the previous year.
GIA president Ronak Shah said the rise in claims underscored the sector’s core function. “The increase in claims underscores the vital role we play, reminding us of our purpose and importance of the work we do. Whether it’s an accident on the road, a fire at home, or a crisis while overseas, insurance is what enables individuals and businesses to recover financially and move forward from unexpected events,” he said.
