UK listed insurer Goshawk Insurance Holdings Plc fell 10.28 percent in trading yesterday after the company said it is to pay $25 million more into a reserve fund for its failed Bermuda reinsurer, Rosemont Re.

Goshawk's reserve boost increases the monies available to cover claims from policyholders sustaining damage in last year's deadly hurricane season to about $130 million. And Goshawk said its coffers could be tapped again if it becomes necessary to set up a reserve fund for claims arising from non-property catastrophe policies previously sold by Rosemont.

Shares in the insurer ? which has counted Rosemont as its main operating subsidiary since its Lloyd's operation was put under water by earlier financial woes ? sank six pence to 5.5 pence in trading on the London Stock Exchange yesterday.

Rosemont was put into run-off in October, making it closed to new business, after 2004 hurricane losses were compounded by losses from last year's string of hurricane losses.

The reserve boost was a new blow for Goshawk shareholders already disgruntled after the company in November said returns could be delayed because Bermuda regulators were restricting Rosemont's license. Under the restrictions ? put on Rosemont after its statutory capital fell below the $100 million required under its class four Bermuda insurance license ? Rosemont needs Bermuda Monetary Authority approval before make any money transfers to Goshawk.

Goshawk, in its regulatory filing yesterday, said Rosemont continues to be in breach of various financial covenants and undertakings to its banks. And Goshawk said it is in discussions over several options, including a possible equity issue, with the BMA and the group's banks.