A sister company of Bermuda-based reinsurer Goshawk Re has been shut down after significant losses in the last two years.

Management of UK-based Goshawk Insurance Holdings said last week that its Lloyd?s of London operation, Syndicate 102, was being put into run-off, or ceasing to write any new business, effective immediately.

Goshawk said on Friday that its decision to exit Lloyd?s would result in it posting a $60 million restructuring charge.

In a Press statement, the company added that the development would allow it to focus on its better performing Bermuda operation, Goshawk Re. The company was one of a wave of reinsurers to set up on the Island after a void in capacity and increase in reinsurance rates after the September 11 terrorist attacks.

In September, Goshawk revealed a net loss of ?45 million for the first six months of the year. The worse-than-forecasted results followed on the heels of several earnings warnings made earlier in the year.

Although Bermuda unit, Goshawk Re, posted a good result ? operating profit of ?14.2 million for the first half of the year ? it was not enough to bail out the company, which was under strain from poor results over the last two and a half years from Syndicate 102.

Goshawk attributed its financial woes at Lloyd?s to the company?s boosting of its reserves.

The need to boost reserves stems from costs, legal expenses and cargo-insurance business for ?prior years?, Goshawk said in September. The company was also a lead insurer on a Columbia shuttle policy for $10 million.

British news reports have speculated in the last week that Goshawk could be a likely takeover target.