London-listed insurer Goshawk said its new Bermudan reinsurance subsidiary had received approval as a Class 4 reinsurer from the Bermudan regulatory authority.

The Lloyd's insurer said it had decided to develop Goshawk Reinsurance in Bermuda because of the island's beneficial tax and regulatory regime and because of the low cost of establishing and running the operation.

It said the transactional cost of processing business in Bermuda was lower than at Lloyd's.

It added that Bermuda would also allow it to make more efficient use of its capital to underwrite reinsurance.

Goshawk said it expected its premium split in 2002 to be approximately 60% Lloyd's and 40% Bermuda.

The company released the details as it announced the results of it share offering and changes to its management structure for next year.

Goshawk said share holders had applied for 25.8% of its share offer of almost 103.5 million shares at 98p per share.

Meanwhile, in 2002, Goshawk's chief executive officer Andrew Gammel will also become group underwriting director. Finance director Chris Fagan is take on the additional responsibility of being the company's chief operating officer.

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