Goshawk Insurance said it has breached certain of its banking covenants, as it gave estimates that the range of
possible net loss outcomes from its exposure to Hurricane Wilma could be between $8m to $15m.
The company said it is working closely with its lenders in order to resolve its position over the covenants.
Goshawk said no loss advices have yet been received on its exposure to Hurricane Wilma and added that any possible loss development above $15m is covered by its retrocession programme.
The company also said the Bermuda Monetary Authority has notified it that it intends to restrict a license held by its Bermudian operation Rosemont Re.
This means that any future distributions made by Rosemount to Goshawk may be delayed, as it would now require the BMA's approval first.
The company said it continues to be dependent on the remittance of funds from Rosemont Re for its ongoing financial requirements, and so the BMA's move restricts its ongoing working capital position.
Goshawk's share price plummeted over 40% to 5p on the news.
