The new board and management of Goshawk has said it has increased the amount of cash set aside to cover last year's hurricane-related losses by $25m, bringing its total net estimated loss provision to $130m.
The company added that the increase has pushed its main operating subsidiary, Bermuda-based Rosemont Re, below the minimum solvency requirements set out by Bermudan regulators.
As a result, any transfer of funds from Rosemont
to its parent company will require the approval of the Bermuda Monetary Authority.
In addition, the Group said it continues to be in breach of various covenants and undertakings to its banks.
Goshawk said it is in talks with the BMA and its banks over ways of strengthening its capital position, including a possible equity issue.
