SUEZ CANAL BLOCKAGE A HUGE LOSS EVENT FOR GLOBAL REINSURERS.

Finally normalcy has gradually return to the Suez canal the hub way of global shipping after about one week of disruption. Experts believe this event will reduce global reinsurers earnings but should not materially affect their credit profiles while prices for marine reinsurance will further as a consequence of the container ship ever given grounding in the canal. Fitch had estimated that losses may run into hundreds of millions of Euros.

Accidents involving large container ships in the past have caused property claims of over $1billion dollars but these were mostly related to salvage. In this case the ever given Is still able to travel once freed. However claims related to hull and cargo insurance including salvage(which will be borne by the ship owners hull insurer).

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