Bermudian insurers and shipping companies are feeling the impact of war in the Middle East.

Several insurers, such as Mosaic and Relm, have offices in the region, while others such as Skuld and Gard P&I, who have a presence on the island, underwrite specialist marine or war coverage that has come into sharp focus since the conflict started over the weekend.

Several Bermudian-based shipping companies, including Nordic American Tankers and Teekay Corporation, operate vessels that ship oil, natural gas or other goods through the Middle East danger zone.

Joint Israeli and US strikes on Iran, starting on Saturday, sparked Iranian retaliation across the Gulf region.

A spokeswoman for Mosaic, which has an office in the Dubai International Financial Centre, said the operation remained open with the seven employees working remotely.

Mosaic’s leadership has been in close contact with the Dubai office since the attacks started, providing support to staff members and their families.

Mark Wheeler, co-chief executive officer of Mosaic, said yesterday: “Our team members have registered for state-sponsored evacuation programmes and we’ve established a formal incident update response group who are monitoring the situation real time.”

Mosaic underwrites three of its global specialty lines from Dubai: political risk, political violence and cyber liability insurance. The DIFC, where Mosaic and fellow Bermudian insurer Relm are among the tenants, has directed remote working for at least the next few days.

“Our team is working remotely and we’ve encouraged everyone to stay indoors and avoid unnecessary movement. We will continue to monitor the situation closely and adapt as needed,” Mr Wheeler said.

“From a market point of view, we are open for business and continue to actively underwrite risks from the region. We recognise it’s a fluid situation and clients are still assessing exposures, so we’re staying close and available to support them as needed.”

The Middle East region is a key area for shipping. About one fifth of the world’s oil supply is shipped out of the Persian Gulf and through the Strait of Hormuz, close to the Iranian coast.

Some of the world's largest maritime insurance mutuals — including Gard and Skuld — said they would withdraw war risk insurance cover for ships entering the Persian Gulf starting on Thursday, as reinsurers pulled back their capacity.

In a statement on the Skuld website, Stale Hansen, the chief executive, said: “Skuld is following closely the concerning developments in Iran and the wider Arabian/Persian Gulf which have resulted in a materially heightened level of geopolitical and operational uncertainty. It is already evident that reinsurers’ appetite for war risk exposure is tightening, and in practical terms, it will result in reinsurers withdrawing capacity at short notice.

“Against this backdrop, the association has therefore decided to issue the assureds with a notice of cancellation of the war risk cover.”

Skuld is working on the details of buyback options to enable insureds to reinstate coverage, Mr Hansen added.

Gard had a similar message, stating on its website that its group of insurers, including Gard P&I Bermuda, had “received notice of cancellation from their reinsurers in respect of war risks in Iran and Persian/Arabian Gulf. As a result, it is necessary for the Insurers to issue notice of cancellation in respect of the affected insurance covers”.

Meanwhile, the cost of insuring vessels in the region is seen as likely to rise.

Dylan Mortimer, a marine hull specialist at insurance brokerage Marsh, said: “The primary risks centre on the Persian and Arabian Gulf, particularly the threat of vessel boarding and seizure by Iranian forces and the potential closure of the Strait of Hormuz.

“It is very early to tell at this point, but we would estimate that near-term rate increases for marine hull insurance in the Gulf could range from 25 to 50 per cent, barring any direct attack on merchant shipping, which could have major repercussions across war insurance rates.”

While Iran had not formally closed the Strait as of yesterday evening, at least 150 ships were reported to have dropped anchor and sought shelter in the region after several vessels were attacked over the weekend. Major container lines, including MSC, CMA CGM and Hapag-Lloyd suspended bookings in the Middle East.

Several Bermudian-based tanker operators regularly ship through the region. The Royal Gazette reached out to Nordic American Tankers and Teekay Corporation for comment yesterday.

With shipowners deterred from sending vessels to the region, the costs of shipping oil from the Middle East to Asia — already at six-year highs — are set to rise further, analysts said yesterday.

In its earnings statement last week, Nordic American said nearly two thirds of its spot days for the first quarter of 2026 had been fixed at an average rate of $55,000 per day per vessel — sharply up from $35,000 in the fourth quarter of last year.

Nordic American shares rose 3.58 per cent on the Nasdaq Stock Exchange in New York yesterday.