Goshawk has doubled its loss estimate from Hurricane Katrina to $60m.
The company said its gross loss estimate would also increase by 30% from $99m to $130m.
It added that Hurricane Rita would impact upon its offshore energy losses. An initial loss estimate of $30m has been announced.
Goshawk anticipated that due to the “unprecedented losses” of 2004 and 2005, 2006 would produce the best underwriting conditions in property and marine business since 1992.
The company board, it said, was considering a small number of detailed proposals, which would either entail a significant capital injection into Rosemont Re or a sale of Rosemont Re.
Goshawk said each option, subject to AM Best rating approval, would allow Rosemont Re to participate in the “excellent trading conditions” expected in 2006.
If the company is unsuccessful in raising capital, its ability to write new business will be severely impaired, it concluded.
