On February 10, 2025, the Portuguese-flagged cargo ship MV Solong collided with the MV Stena Immaculate, a tanker transporting Jet-A1 fuel for the U.S. military, off the eastern coast of England in the North Sea. The incident resulted in severe damage to both vessels, with the Stena Immaculate suffering a ruptured cargo tank that triggered a fire and multiple explosions, releasing fuel into the sea, while most crew members escaped unharmed, though one sailor from the Solong remains missing.
The Stena Immaculate, part of the U.S. government’s Tanker Security Program, was safely anchored at the time of the collision, prompting a U.S. investigation to rule out sabotage, which could influence insurance claim handling.
Morningstar DBRS estimates total insured losses between $100 million and $300 million, affecting hull and machinery (H&M) insurance due to potential total loss of the 140-meter Solong and 183-meter Stena Immaculate, valued at $50 million to $100 million, as well as protection and indemnity (P&I) policies for environmental cleanup costs that may exceed H&M claims.
Marine cargo insurance claims are expected from cargo owners, with litigation likely to determine liability and activate subrogation clauses, while the global marine insurance industry is deemed capable of absorbing the losses despite concerns over profitability amid 2024’s significant claims, including the Baltimore Bridge collapse and Red Sea challenges.
Morningstar DBRS, headquartered in Toronto, Canada, is a leading credit ratings agency offering independent assessments across 4,000 issuers and 60,000 securities globally, with a focus on financial institutions and structured finance.