Goshawk Insurance Holdings' annual results show a pre-tax loss of £7.4m for 2001. This is compared to a profit of £2.9m in 2000.
Goshawk raised in the region of £101m last year by way of a new share offer to raise capital. This was done in order to write more business so the company could take advantage of rising rates in the wake of the World Trade Centre attacks.
The company said it is continuing to expand its business at Lloyd's, announcing that its syndicate's capacity has been increased to £185m for 2002.
Chairman David Hooker said: "The continued strengthening of rates and a more disciplined approach by the entire market to terms of business give every indication of the continuing upturn in the insurance cycle."
Hooker commented on the new direction the company had taken: "During 2001 it became clear to us that the insurance cycle, which had tested lows during the previous three years, had begun to turn in the right direction. We determined that our strategic response should focus on a major expansion of the group's business.
"We decided that a large part of this expansion should be through a new Bermudian reinsurance company which would benefit from lower costs and from a more attractive fiscal and regulatory regime than that in the UK."
