Egypt’s Suez Canal Blockage causes large loss for global reinsurer industry: Fitch

Egypt’s Suez Canal Blockage causes large loss for global reinsurer industry: Fitch

A ship transiting through the Suez Canal - Photo courtesy of SCA







CAIRO – 29 March 2021: The blocking of the Suez Canal and resulting disruption to global shipping is likely to cause a large loss event for the reinsurance industry, Fitch Ratings stated Monday. 

 

It added that the blockage would reduce global reinsurers' earnings but should not materially affect their credit profiles, while prices for marine reinsurance will rise further as a consequence of the container ship ‘Ever Given' grounding in the canal.

 

Earlier on Monday, March 29, Canal officials said that Ever Given, had been partially freed and that they hoped traffic along the Suez Canal could resume again within hours. The ultimate losses will depend on how long it takes the salvage company to free the container ship completely and when normal ship traffic can resume.

 

However, Fitch estimates losses may easily run into hundreds