Coming to Bermuda has proven to be a good business decision claimed the chief of one of Bermuda's newest insurance ventures.

Chris Fagan, CEO of Goshawk Insurance Holdings, the parent company of Goshawk Re, told The Royal Gazette from his London office, thatthe Island is an increasingly important market and that fact is not being missed by those in the business.

Goshawk Re set up on the Island last year after a void in capacity following the September 11 terrorist attacks. Not even a year in operation, Goshawk Re can account for a small proportion of the group's overall business. The company's interim results, through June 30, 2002, showed the company had written 15 percent of the group's business for the six month period. Goshawk, a company listed on the London Stock Exchange, also owns and manages Lloyd's Syndicate 102.

But Goshawk Re's contribution to the group could jump significantly with Mr. Fagan predicting Goshawk Re will be writing 50 percent of the group's business "in relatively short order".

And the plan is to do that all from Bermuda with Mr. Fagan pointing out that Bermuda is becoming more and more the place to do business. Of course, the task of doing business here is also made easier, Mr. Fagan said, as more brokers are setting up here, recognising the business opportunities in this market.

Mr. Fagan added that while brokers Marsh and Aon already had a significant presence here, other brokers were now starting to staff up their offices and actively working in the Bermuda market.

He said: "It is a good thing, we are being shown more and more business. Overall we have been very pleased with the Island."

Goshawk however, in comparison to some of its competitors (Goshawk was one of more than a dozen large insurers to set up here after September 11), has got off to a slow start with close to $60 million in business written during its first six months.

That figure is far below what some other companies wrote over the first two quarters of 2002 but Mr. Fagan said Goshawk Re, as a public company, was focused on a return for its investors: "We want to grow at a pace that ensures shareholder return. We don't see it as an ooh, they've written more than us..."

That doesn't mean though that the company won't go after all the business it can prudently write. Mr. Fagan said the company was on target to write between $130 million and $140 million this year. And in addition, its capitalisation should be up to the $200 million to $250 million mark by year end, enabling Goshawk Re to go after even more business next year.

Mr. Fagan said increasing Goshawk Re's capitalisation levels would be done through more gearing at the parent company level.