Baltimore bridge disaster likely to be ‘biggest ever marine insurance loss’

Lloyd’s of London says the accident is unusual in being a ‘fully insured risk event’ in which the bridge, the ship, its cargo and the port were all covered

Ben Martin

, Banking Editor

Thursday March 28 2024, 12.47pm BST, The Times

The Dali cargo vessel after crashing into the Francis Scott Key Bridge. Analysts put the cost at up to $3 billion

Baltimore bridge collapse likely to result in multibillion-dollar insurance claims -Lloyd's of London

March 28, 20247:17 AM PDT Updated 21 hours ago

Francis Scott Key Bridge collapse in Baltimore

LONDON, March 28 (Reuters) - The collapse of Baltimore's Francis Scott Key Bridge is likely to lead to a multi-billion dollar insurance loss, the chairperson of commercial insurance market Lloyd's of London (SOLYD.UL) said on Thursday.

The massive Singapore-flagged container ship Dali sailing out of Baltimore Harbor bound for Sri Lanka reported losing power and the ability to maneuver before plowing into a support pylon of the bridge on Tuesday.

The impact brought most of the bridge tumbling into the mouth of the Patapsco River, blocking shipping lanes and forcing the indefinite closure of the Port of Baltimore, one of the busiest on the U.S. Eastern Seaboard.

The tragedy could lead to up to $4 billion in insurance claims, Morningstar DBRS said.

It was too soon to put a figure on the total insurance loss, Bruce Carnegie-Brown told Reuters, but he said he would be "very surprised" if the event did not result in a multi-billion dollar loss, adding that "the tragedy has the capacity to become the largest single marine insurance loss ever".

The previous record marine loss was from the Costa Concordia luxury cruise liner disaster in 2012.

Lloyd's, which has more than 50 member firms, is active in the marine and property insurance markets, which are expected to face large claims from the damage to the bridge and the disruption at the port.

Lloyd's had gross written premiums in 2022 of more than 6 billion pounds ($7.5 billion) in marine, aviation and transport insurance and reinsurance. North America is its largest market.

Carnegie-Brown also said the insurer has set aside 1.6 billion pounds ($2 billion) in reserves in the past two years for disputed aviation claims over planes stuck in Russia following its invasion of Ukraine.

Talks between aviation leasing companies and insurers to reach settlements over the multi-billion dollar claims were at a "reasonably advanced stage", Carnegie-Brown said, ahead of major court cases in Dublin and London due to take place this year.

Lloyd's reported a 2023 pre-tax profit of 10.7 billion pounds ($13.49 billion) earlier on Thursday, boosted by strong underwriting and investment performance.

South China Morning Post

21 hours ago

Baltimore bridge collapse may lead to 'largest single marine insurance loss ever', Lloyd's of London says | South China Morning Post

X.com

10 hours ago

أبو عمّار on X: "🥷 Baltimore bridge disaster likely to be 'biggest ever marine insurance loss' “The accident in Baltimore is UNUSUAL because it is a “FULLY

Fitch Says Baltimore Bridge Collapse Likely to Be Largest Marine Insurance Claim in History

Provided by Dow Jones

Mar 28, 2024 12:33pm

By Stephen Nakrosis

The collapse of the Francis Scott Key Bridge in Baltimore is likely to be the largest marine insurance claim in history, with $2 billion to $4 billion industry loss anticipated to be spread widely across carriers, Fitch Ratings said.

The ultimate insured loss will depend on a number of factors, including the length of time the port is blocked, Fitch said Thursday. Even after the bridge debris are cleared, new bridge construction will cause disruptions to port traffic.

Most of the losses will be borne by reinsurers participating in the International Group of Protection and Indemnity Clubs' reinsurance pool, according to Fitch.

"The event is anticipated to have a limited impact on individual reinsurer earnings and therefore is unlikely to affect the ratings for global reinsurers," Fitch Ratings said.