The U.K.’s Goshawk Insurance Holdings announced that it will exit the Lloyd’s market due to a series of losses dating back to 2001, and will henceforth concentrate on Goshawk Re its Bermuda-based reinsurance operation.
The company will take a £35 million ($59.4 million) restructuring charge to cover the expenses of putting its syndicate 102 into run-off. It confirmed that the move will not adversely affect policyholders, who will continue to be fully covered.
Goshawk raised £101 million (around $143 million at the time) in Nov. 2001, but did not use the funds to recapitalize its Lloyd’s business. It started the Bermuda insurance operation instead, and, as one of the island’s newer companies, has profited from the strong demand for reinsurance in the current hard market cycle.