GoshawK's Syndicate 102 has been placed into run-off. GoshawK faced difficulties after its underwriting exposure to TAG was unveiled when the accident management firm collapsed earlier this year.
GoshawK's Syndicate 102 has been placed into run-off. The syndicate faced difficulties after its underwriting exposure to TAG was unveiled when the accident management firm collapsed earlier this year.
A Lloyd's representative said: "Lloyd's has announced that with effect from 30 October 2003, GoshawK Syndicate Management Ltd will no longer be able to accept any new risks on behalf of Syndicate 102, other than those that they are legally obliged to.
"Despite working with GoshawK's management and imposing significant underwriting restrictions it has not been possible to resolve a number of problems. Lloyd's has taken this action in the best interests of the Society and of the syndicate's policyholders, whose financial security will not be affected by this decision.
"Lloyd's will work closely with GoshawK to ensure an orderly run-off of the business.
GoshawK will emerge from this restructuring as a pure reinsurance company.
Goshawk Insurance chief executive Chris Fagan said: "We have worked hard over the last six months to resolve the problems within Syndicate 102. However the problems caused by prior year losses are not containable within the existing capital base of the Syndicate and we have concluded that it would not be in our shareholders' interests to provide additional capital support for Syndicate 102. It is therefore with regret that we are obliged to put Syndicate 102 into run-off.
"Putting Syndicate 102 into run-off will allow us to focus our time effort and resources on our profitable reinsurance operation in Bermuda, GoshawK Re."
