Bermuda-based Rosemont Re may go on the block according to parent company Goshawk Insurance Holdings as it doubled its initial estimated loss from Hurricane Katrina on Friday.

In a statement, Goshawk boosted its Katrina net loss estimate to $60 million from an initial estimate in the range of $25-$30 million.

Its initial net loss from Hurricane Rita is estimated at $30 million partly because the hurricane was a severe category 5 storm as it moved through the Gulf of Mexico and caused catastrophic damage to offshore energy interests. Property damage was less than originally feared at landfall however since Hurricane Rita weakened to a category 3 hurricane, the company said adding that initial net loss estimate assumes a total loss to the remaining marine retrocession limit.

?Our two core lines of property and marine business have been heavily impacted by the unprecedented losses of 2004 and 2005. As a result, 2006 is expected to provide the best underwriting conditions in these two lines since 1992, driven by supply and demand imbalances, higher capital requirements and fundamental changes in the assessment of frequency and severity of windstorm activity,? the company said in a statement.

The board is currently considering a ?small number of detailed proposals? which entail either a significant capital injection into Rosemont Re or its outright sale, the statement said.

Last month, Rosemont Re was threatened with a credit rating downgrade by the AM Best agency. A downgrade in Rosemont?s A- rating to the triple B range would prompt reinsurance brokers to stop recommending the company to clients. If the rating is reaffirmed by A.M. Best, the board believes either proposal would allow Rosemont Re to participate fully in the excellent trading conditions expected in 2006 as a much stronger company

A firm proposal will be put to shareholders as soon as possible. ?If the company is unsuccessful in raising capital, the company?s ability to write new business will be severely impaired,? Goshawk said in the statement.

Numis Securities, which acts as broker to Goshawk, said the insurer faces three strategic options: a rights issue or other capital raising; the sale of the business to a trade buyer or private equity group looking for a platform in the insurance centre of Bermuda; or to place the business in run-off under a reduced credit rating.