Goshawk Insurance has announced its Bermuda-based reinsurance arm has strengthened its capital base with a $40m (£24.8m) loan from Barclays.

It means that the group's capital and surplus is now in excess of $200m (£124m), cash which it said will allow it to take advantage of the "excellent trading conditions".

The loan facility takes Goshawk Insurance's gearing to 19% and apparently "adds to its capital efficiency," according to the company.

The insurer raised £101m in December to develop its
reinsurance operation, which is benefiting from a major upturn in rates post-11 September.

Goshawk chief executive Chris Fagan said: "We have increased Goshawk Re's capital and surplus to over $200m to take advantage of current excellent trading conditions."

Goshawk Re began trading in January 2002 and in its first six months wrote premium income of £36.4m.

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