To all fixed premium assureds (including Fixed P&I, Charterers, Offshore, Yachts, Yacht Crew Liability, and Optional covers) where cover is extended to include War Risks.
We refer to the General Notice of Cancellation issued by Assuranceforeningen Skuld (Gjensidig) (the “Association”) on 17 February 2026 (together “General Notice”).
In light of concerning developments in the Red Sea area, which have materially increased geopolitical and operational uncertainty, the Association has received a notice of cancellation from its reinsurers in respect of certain commercially reinsured war risks. It is therefore necessary for the Association to issue a corresponding Notice to Assureds.
This Circular constitutes such Notice of Cancellation to the War Risk cover (“Notice”) in accordance with the following clauses in our Terms & Conditions:
Owners’ Fixed P&I Terms & Conditions: Cancellation clause to the Cover Extension for War (Primary / Excess Hull Value) Risks in the Certificate of (Re)insurance
Charterers’ Cover Terms & Conditions: Clause 26.4.3.
Offshore Terms & Conditions Appendix 3, Termination clause, paragraph 1
Yachts Terms & Conditions Clause 58.3
Yacht Crew Liability Terms & Conditions Clause 40.3
Optional Covers Terms & Conditions: Clause 4.1.1
Notice is hereby given today, 12 August 2026, and shall take effect on expiry of 72 hours from 00:01 hrs GMT on the day after the Notice is given.
Accordingly, with effect from 00:01 hrs GMT on 16 August 2026, War Risk cover for Assureds entered for risks under the above Terms & Conditions will automatically terminate in respect of Assureds trading to, from, though, or being within the territorial waters of the following countries or areas (including any port area that at the date of this Notice constitutes part of such a country or place however it may hereafter be described):
Indian Ocean, Gulf of Aden and Red Sea
The waters enclosed by the following (the Boundaries):
- a) on the northwest, by the Red Sea, south of Latitude 25°30’N
- b) on the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E
- c) on the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E
- d) and on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E
excepting coastal waters up to 12 nautical miles offshore of territories which are wholly or in part within the Boundaries.
The coastal waters exception above does not include the Bab el-Mandeb Traffic Separation Scheme, the Red Sea coast of Saudi Arabia that lies within the Boundaries, or the Yemeni coast.
The Notice applies to all persons or companies named as Assureds and/or Co-assureds in the relevant P&I Certificate(s) of Insurance or, where applicable, Cover Note(s). Where the relevant policy is a reinsurance, the terms "Assured" and "insurance" shall be read as "Reassured" and "reinsurance", respectively.
It replaces and supersedes any other terms relating to the relevant war risks agreed in individual Certificates of Insurance or Confirmations of Cover, and fully replaces the General Notice issued by the Association on 17 February 2026.
It applies to War Risk cover only. All other terms of cover remain unchanged, and the position in respect of any other area currently restricted or excluded under the relevant policies is unaffected.
This Notice does not affect mutual P&I and FD&D cover, and the Excess War Risks cover afforded to Assureds with mutual P&I Cover.
For Members or Assureds who have not purchased the relevant war risks cover, this Notice is provided for information only.
We are currently finalising the details of the buy-back option for reinstatement of cover. Please contact your Skuld underwriter for further information.
Ståle Hansen
President and CEO
Assuranceforeningen Skuld (Gjensidig)