"Goshawk said the net charge to the group's profit and loss account resulting from the closure will be in the region of 35 mln in the current year.

Panmure was delighted that Goshawk has finally drawn a line under its Lloyds of London business, with the broker announcing that it would upgrade the stock to 'buy' from 'neutral' as soon as it met with new chief executive, Russell Brooke.

'Investors should be pleased to see that the comment 'Goshawk's liability is limited to its Fund At Lloyd's' in the announcement of the closure of Syndicate
102,' said the broker in a note to clients.
The broker reckons that Goshawk will likely report a loss of 50 mln stg for the full year. However, if it can continue to deliver a 20 pct return on capital at
its re-insurance unit in 2004 and 2005, the shares will begin to look inexpensive, argued Panmure."

Getting rid of 102 may make it a takeover target, suggests the DT today

Goshawk jumped by 1.75p to 35p after Lloyds of London persuaded it to exit the London market and close its loss-making Lloyds's syndicate 102. This will allow the company to focus on its Bermudan based reinsurance activities. The company is still technically in breach of banking covenants but these will be renegotiated and that will leave essentially a pure reinsurance play trading at a big discount to a Net Asset Value estimated to be 57p a share by brokers KBC Peel Hunt.

LONDON (AFX) - Shares in Goshawk Insurance Holdings PLC moved higher this
morning as investors applauded its decision to wind down its Lloyd's of London
syndicate and focus on its re-insurance unit, said dealers.

In a statement to the Stock Exchange this morning, Goshawk said it had put its
Lloyd's of London Syndicate 102 into immediate run-off due to financial problems
stemming from the collapse of the Accident Group, the no-win-no-fee compensation
firm.

Goshawk said it expects its Funds at Lloyd's (FAL) will be retained by Lloyd's
to cover losses from the syndicate.

This will involve Goshawk surrendering 45 mln stg of cash and securities held
by Lloyd's and contributing a further 20 mln to collateralise a letter of credit
facility.

The majority of the expenses incurred in closing down the group's Lloyd's
operations not attributable to Syndicate 102 are expected to be charged to its
profit and loss account in the current financial year.

Goshawk said the net charge to the group's profit and loss account resulting
from the closure will be in the region of 35 mln in the current year.

Panmure was delighted that Goshawk has finally drawn a line under its Lloyds of
London business, with the broker announcing that it would upgrade the stock to
'buy' from 'neutral' as soon as it met with new chief executive, Russell Brooke.

'Investors should be pleased to see that the comment 'Goshawk's liability is
limited to its Fund At Lloyd's' in the announcement of the closure of Syndicate
102,' said the broker in a note to clients.

The broker reckons that Goshawk will likely report a loss of 50 mln stg for the
full year. However, if it can continue to deliver a 20 pct return on capital at
its re-insurance unit in 2004 and 2005, the shares will begin to look
inexpensive, argued Panmure.

Ailing Goshawk is a bid target
2 November 2003, Mail on Sunday

INSURER Goshawk looks likely to become a bid target after a shake-up left it focusing on its reinsurance business.




Today's City News
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Last week the company was told by Lloyd's of London to stop taking new business through the insurance market, where it trades as Syndicate 102.


The move was part of a Lloyd's policy to clamp down on badly performing syndicates to avoid a repeat of the massive losses that hit the market in the Nineties.


Goshawk's syndicate has suffered big losses on life insurance policies for elderly Americans and was caught up in the collapse of The Accident Group.


It will stop underwriting and Goshawk will provide 65 million to enable it to pay for new and existing claims.


Shares in the company moved higher on Friday to close at 35p, valuing the company at 62 million as industry insiders said it was a clear bid target.


Goshawk is believed to have offered itself to potential buyers earlier this year, but they were deterred by the Lloyd's situation.


As a pure reinsurance company it is far more attractive to buyers, and analysts suggested a rival such as Amlin could be interested.

http://www.thisismoney.com/20031102/nm69886.html

.

Did you have something to say Andy ?

GOS and PDX may both have good days tomorrow, good luck!

Let's hope so Andy ! GOS had some nice press coverage so I expect a flood of buying as for PDX I don't really know but good luck ;-)

Good start to the morning ;-)

Well doing very well.Expect some large buys to come in when US opens.

Is nobody else in these ? There is a gap from 52p to 73p that could quite easily be filled.

Goshawk sister company closes

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 Lloyds 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 Lloyds 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 Lloyds to the companys 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.

http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20031103/BUSINESS/111030034

I do like the last paragraph !

Nobody likes a bargain then !

LONDON (AFX) - Goshawk Insurance Holdings PLC, which put itself up for sale
in July after a profits warning knocked 22 pct off the company's market value,
today said it has not received an approach to date that has resulted in
substantive talks on a possible bid for the company.
This came after the Takeover Panel informed the company yesterday that it
was deemed to have gone into a bid period with immediate effect.
The company said it "expects to continue to receive expressions of interest
from time to time and will continue to assess any such expressions on their
merits".
A further announcement will be made when appropriate, it added.
Goshawk had been dragged down by the abject performance of its Lloyd's
syndicate 102, which in turn has been hit by the collapse of the Accident Group,
the no win, no fee compensation firm.

Looks like we have a buyer picking up alot of stock.

Also RNS from ISIS management stating they have picked up 2M

;-)

From The Times.

November 05, 2003

Rumour of the Day

GOSHAWK INSURANCE, down 1p to 37p, was the subject of takeover speculation after being forced to close its Lloyds of London business last week. The firm admitted it had received informal approaches, but said nothing substantive had emerged. Amlin, which fell 3p to 137p, is seen as a likely bidder.

lol, morning Ash - compelling read as ever.

Looks like someone is taking on as much stock as possible at this level !

Maybe a potential bidder is accumulating !

p.s Velocity I am not Ash ;-)

Morning all, What is the opinion on Goshawk now with the latest news and big sells? I feel a bit iffy. 60p when??

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=142724

Elsewhere the chief executive and underwriting director of Goshawk Insurance both resigned yesterday after the insurer was forced to close in London because of fears it is under-reserved, reports the Independent.