Kidnap and ransom insures 51% boost

Hiscox has reported strong interest for its K&R product amid the increased threat of piracy attacks against merchant shipping off the Horn of Africa.
Group chairman Robert Hiscox said: “Our K&R team continues to lead the market in response to piracy in the Gulf of Aden, giving shipowners and charterers the ability to trade despite the risk involved.”
Hiscox is the world’s leading provider of K&R cover, controlling some two-thirds of this niche insurance market ahead of rivals including major insurers such as Travellers, Chubb, AIG, PIA and ACE.
Hiscox reported gross written premiums up over the first quarter to £487m (US$735m) from £321m.
The weakness of the pound has generated big gains for Hiscox, along with other Lloyd’s insurers, almost doubling the value of its gross written premiums over the first quarter, compared with a 25% growth when measured on constant exchange rates.
The aftermath of the Gulf of Mexico hurricanes last year has also placed upward pressure on prices for, and fanned business interest in, its catastrophe-exposed reinsurance lines.
Hiscox said it had recorded over the first quarter a strong growth in gross written premiums, up 10%-50%. The global insurer’s energy business saw rates climb in excess of 50% for Gulf of Mexico storm coverage, with other energy rates also up by an average of 10%.
Mr Hiscox said: “In both reinsurance and energy we are achieving tighter terms and conditions at higher thresholds, which makes the overall premium versus exposure very attractive.”
The hardening market for reinsurance and energy insurance rates also lifted Hiscox Global Markets’ volume of business between January and March by 43% to £255m, although this was 19% when measured by local currencies.
“There are clear signs this will continue as we approach the main reinsurance renewal periods of June for Florida and July for other US business,” Mr Hiscox said