The last of the reinsurers to set up in Bermuda, Goshawk Re, expects to be up and running by mid January at the latest and announcements should be made about key positions in the New Year.

This is according to Chris Fagan, financial director of Goshawk Insurance Holdings Plc and Director of Goshawk Re.

“We've been rushing to get it all in place by the 1st of January, whether or not we succeed in that, I am not entirely certain,” said Mr. Fagan.

“Goshaw Re is approved as a Class 4 business and the capital will be in place on the 1st of January, but whether its insurance security rating is in place, I am not entirely certain.

“So obviously we will be able to write business, but the security rating is important.

“If it is not on the 1st of January, I would expect it to be shortly afterwards.”

But he said the chief executive officer of the company had not yet been announced and a lease for premises not signed as yet.

When asked about what size the Goshawk Re team will be he said: “It will be quite small, because we are proposing to write in the region of $150 million of business in the first year.

This is business which is already written in part in the syndicate, so we have the existing expertise to write the business.

“I would think probably a team of between six and eight in Bermuda , maybe ten at maximum, including support staff.”

Goshawk Re was the seventh insurer to announce it was setting up in Bermuda by UK Insurer Goshawk Insurance Holdings.

Mr. Fagan added: “Goshawk Re will be set up with an initial capital of $140 million and we will expand that quite quickly in the medium to short term, reasonably significantly.

“We would anticipate expanding it to about $200 million in the first part of the year.”

Goshawk Insurance is listed on the London Stock Exchange and has as its prime business underwriting.

It owns and manages Syndicate 102 in Lloyds.

Mr. Fagan said: “Syndicate 102 has an exceptional track record in consistently out performing the Lloyds market.

“Its results over a 20 year period have never been out of the top quartile of all Lloyds results, and recently in the top ten percent.

“It's quite a broadly-based syndicate.

“We write marine and non-marine direct and reinsurnance in the syndicate.

“We write no motor business and no life though.

“And we perceive an opportunity to expand the group overall, post September 11, and decided that Bermuda made a great deal of sense.

“It's a significant enhancement to the business model because we feel that we are able to use the new capital that we have raised.

“We have raised ?101 million in placing and open offer.

“The placing was over-subsciribed, which is good news for us.

“But we think that we can use that capital from the placing more efficiently in Bermuda than we would be in London, and also you can write at a much lower cost base in Bermuda.

“So there is a combination of an efficient use of capital and a lower cost base and also not to be overlooked, there is the beneficial tax regime in Bermuda as well.”