Chubb has been designated as the lead insurer for a U.S. initiative designed to provide insurance coverage for vessels attempting to transit the Strait of Hormuz.

The insurer will coordinate with the U.S. International Development Finance Corporation as part of a $20 billion program intended to reactivate shipping operations should regional supply chains be disrupted by a U.S.-Iran conflict.

Evan Greenberg, Chairman and CEO of Chubb, stated, "Trade through the Strait of Hormuz plays a vital role in the global economy, and providing insurance protection for ships is essential to restoring trade flows."

Chubb's stock showed little reaction to the initial announcement, edging slightly lower for the day.