Goshawk Insurance Holdings may have to sell its Bermuda-based subsidiary Rosemont Re to cover losses incurred from hurricanes Katrina and Rita.

This week, London-based Goshawk doubled its estimate of net losses from Katrina to $60m and upgraded its initial Katrina gross loss estimates to $130m from $99m.

The company also predicted Hurricane Rita losses of $30m.

Goshawk said its board was currently considering several proposals that entail raising capital or the sale of Rosemont Re.

Rosemont Re's core lines of business are property and marine insurance.

Goshawk said that without a capital injection "the company's ability to write new business will be severely impaired".

' Further hurricane loss estimates emerged this week:

  • Quanta Capital estimated losses of up to $58m from hurricanes Katrina and Rita

  • Wellington Underwriting increased its estimated net losses from Hurricane Katrina by $50m to $125m before tax. It said it expected net losses from Hurricane Rita of about $36m

  • Chubb estimated its third quarter pre-tax catastrophe losses at $600m, primarily the result of Hurricane Katrina.

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