Goshawk is to double its gearing to pay for expansion in its Bermuda reinsurance operation.

The group plans to borrow from banks rather than go to the markets, as many of its rivals have done.

Goshawk, the first quoted Lloyd's insurer to announce its 2002 results, revealed an overall profit before tax of £10.1m, against a loss of £7.4m in 2001.

Goshawk Re, its Bermuda operation, made a first year pre-tax profit of £22.8m, while the London arm chalked up a £12.7m loss.

Chief executive Chris Fagan said: "We will use all our available capital resources to increase the Bermuda side. We want to make it roughly the same size as London."

The group wrote £126.1m of gross premium in Bermuda last year compared to £330.4m in London.

Its total GWP increased by 98% to £456.5m from £230.8m in 2001.

It would increase and syndicate an existing $40m (£25.5m) loan from Barclays, Fagan said.

The group will attempt to expand within existing lines of business. Fagan admitted it led on less than 20% of the risks it wrote, and aimed to increase that figure.