Goshawk has declared a post-tax loss of $1.0m for the year ended 31 December 2006, up from the $143.1m loss in 2005.
The key constituents of this loss are a $0.3m loss at Rosemont Re and a $0.7m loss within the rest of the group.
The group put the ongoing failures down to “catastrophic underwriting losses during 2005 at Rosemont Re”, “the resignation of almost all of the staff following the sale of renewal rights” and “the on-going risk from underwriting of unexpired policies, reserving and exposure to non-receipt of the reinsurance asset.”
On the future, chairman Rory Macnamara, in his statement, said: “The outlook remains very uncertain and there can be no assurance that the strategy will be successful or that the liabilities of Rosemont Re will remain at the level estimated by directors. Further, even if the liabilities do settle at the level reserved there can be no guarantee that a surplus will be released. As a return of surplus from Rosemont Re remains core to the strategy to repay the banks there remains considerable risk.
“The earliest any distribution might be possible, if at all, is after accounts for the year ended 2008 are published in 2009.
