Maiden profits from its new reinsurance company in Bermuda enabled the Lloyd's insurance group GoshawK to turn 2001's loss of £7.4m into a pre-tax profit of £10.1m last year. GoshawK Re's £22.8m profit on an initial capital base of £88m offset London market losses up from £7.4m to £12.7m. Lloyd's Syndicate 102, which GoshawK manages, achieved premium rate increases ranging from 40% to 190% between 2000 and 2002, of which last year saw rises from 10% to 70% across 14 business classes, except war and terrorism. The syndicate paid £16m on World Trade Center claims and maintains significant provisions exposure to the WTC, but GoshawK chairman David Hooker says 'we have not yet taken the full benefit' of the premium increases, while in general claims have been low, 'with the lowest level of catastrophes and major losses for at least 10 years'. The syndicate's underwriting capacity has been increased from £200m to £225m. Starting with a clean sheet with an A- credit rating, GoshawK Re increased its combined capital and surplus base from £88m to £135m. The company's decision to stay as liquid as possible helped insulate its income on invested premiums from falling equity prices. Hooker says GoshawK will not consider corporate deals, while its shares remain at 101p, down from a 12-month high of 136.5p.

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