Lloyd's Insurers Expect Moderate Baltimore Bridge Claims

Thursday, May 2, 2024

Lloyd's of London insurers Hiscox and Lancashire do not expect large insurance claims from the collapse of Baltimore's Francis Scott Key Bridge in March that caused widespread disruption, they said on Thursday.

Some estimates for the total insured losses from the bridge collapse run into billions of dollars, given the loss of lives, bridge repair costs and traffic re-routing.

The Wall Street Journal reported on Thursday insurer Chubb was preparing to make a $350 million payout to the state of Maryland.

Hiscox does not have direct exposure to the business interruption policy of the port, which is the busiest in the United States for auto shipments, or the property policy covering the bridge, the insurer said in its first-quarter trading statement.

Hiscox said it was one of the reinsurers on the International Group of P&I Clubs' ship reinsurance policy, but said it expected its net loss to be "moderate", without giving further explanation.

Lancashire said in its first-quarter trading statement that "our potential exposure will be within our expectations for an event of this type".

French insurer AXA has also said it does not expect "material" losses from the bridge collapse. AXA's commercial insurance unit AXA XL is lead underwriter on the International Group $3.1 billion reinsurance policy.

Grace Ocean Private Limited, the owner of the Dali container ship that hit the bridge, and its manager Synergy Marine Pte petitioned to limit their liability to a maximum of $43.6 million in an April 1 filing.

The mayor and city council of Baltimore last week filed a lawsuit against the two firms, accusing them of negligence in operating the ship, and saying the loss of the bridge has caused the city’s economic engine to "grind to a halt".


(Reuters - Reporting by Carolyn Cohn; editing by Barbara Lewis)

Categories: Legal Salvage Casualties Insurance North America

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