London-listed insurer Goshawk has forecast pre-tax losses for 2001 at £7.5m, thanks to higher provisions against claims losses and reinsurance recoveries.
Goshawk chairman David Hooker said: "It is our job to make adequate and realistic provisions based on the facts as we know them at the time. We believe we have done that in our assessment of each of the last three years' syndicate results."
The company, which operates mainly through its syndicate at Lloyd's, said it had raised its provisions for losses from the World Trade Centre attacks to £11m from £8.2m.
It added that an additional £6m had been set aside for losses related to various engineering projects and an aviation pool, and that "other adverse movements" would cost it a further £1.7m.
It has also increased its provision against reinsurance recoveries by £1m.
Goshawk said its 1999 syndicate results showed a loss of capacity of 1.9% for its Syndicate 102 and a profit of 4.3% for Syndicate 2021, which has now merged into Syndicate 102.
For 2001, Goshawk has forecast a 1% to 6% loss for 102, while the 2002 year is expected to be profitable.
Goshawk's 2001 results are expected to be released on March 26.
