GoshawK falls toward run-off
GoshawK is set to become the first corporate victim from Hurricane Katrina and Rita's insurance losses when the UK quoted company confirmed this morning that it is likely to go into run-off.
The insurer - which after the demise of its Lloyd's Syndicate in 2003 operates through its Bermudian reinsurer Rosemont Re - confirmed this morning that talks for either a trade sell or a capital injection had now ended.
"A likely consequence is that Rosemont Re will go into run off," the company explained in a statement to the London Stock Exchange this morning (17 October). "There can be no certainty as to either the value or timing of payments to the Company's shareholders if Rosemont Re is in run off".
Despite initially claiming that Hurricane Katrina's losses would only be in the region of $25mn-$30mn, last week the company admitted that the Hurricane, together with Rita, would actually cost around $90mn.
Shares in the group - which stood at a pre-Hurricane price of 45p - slid almost 20 percent in early trading on the London Stock Exchange to stand at 17.25p.
Published on October 18, 2005
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