American International Group Inc. (AIG) expanded excess casualty liability limits for Class 1 railroads in the U.S. and Canada to $1 billion per occurrence, the company announced in a recent statement. This coverage would be in excess of $1.5 billion in underlying limits, and is one of the largest capacities offered to the rail industry by a single insurer.
AIG expanded liability limits in response to demands of rail companies in light of recent record rail traffic and the increasing transport by rail of potentially hazardous materials, such as crude oil. The Association of American Railroads (AAR) reported U.S. rail demand is at a 7-year high. The AAR also said that U.S. Class 1 railroads (including the U.S. Class 1 subsidiaries of Canadian railroads) transported more than 407,000 carloads of crude oil in 2013—an increase of almost 4,300% from 2008’s 9,500 carloads.
“Rail companies need additional coverage to help protect their balance sheets,” said Jeremy Johnson, president and CEO of Lexington Insurance Co. “This billion dollar coverage will help Class 1 railroads address expanding risks while continuing to serve the growing needs of transportation customers in North America.”
The excess coverage is provided by Lexington Insurance Co. and other affiliated AIG companies. Lexington is the largest domestic excess and surplus lines carrier in the U.S.
Recommended Reading
Hess Midstream Announces 10 Million Share Secondary Offering
2024-02-07 - Global Infrastructure Partners, a Hess Midstream affiliate, will act as the selling shareholder and Hess Midstream will not receive proceeds from the public offering of shares.
EQT CEO: Biden's LNG Pause Mirrors Midstream ‘Playbook’ of Delay, Doubt
2024-02-06 - At a Congressional hearing, EQT CEO Toby Rice blasted the Biden administration and said the same tactics used to stifle pipeline construction—by introducing delays and uncertainty—appear to be behind President Joe Biden’s pause on LNG terminal permitting.
Venture Global Acquires Nine LNG-powered Vessels
2024-03-18 - Venture Global plans to deliver the vessels, which are currently under construction in South Korea, starting later this year.
Imperial Oil Shuts Down Fuel Pipeline in Central Canada
2024-03-18 - Supplies on the Winnipeg regional line will be rerouted for three months.
Hess Midstream Subsidiary to Buy Back $100MM of Class B Units
2024-03-13 - Hess Midstream subsidiary Hess Midstream Operations will repurchase approximately 2 million Class B units equal to 1.2% of the company.