its insurance operations, including all marine insurance.

Sphere Drake said it will concentrate on providing reinsurance and specialty insurance. The company said it is restructuring to improve its customer focus, financial performance and stability, and increase long-term shareholder value.

Sphere Drake said the restructuring costs will reduce its earnings by $15 million of charges over the next three quarters.

Sphere Drake reported net income of about $6.9 million for the latest third quarter ended September 30.

The company said it has reached an agreement in principle to sell its Liverpool, England-based yacht and cargo underwriting agency, Groves, John and Westrup.

In addition, the Hamilton-based company said it's in talks currently to sell its protection and indemnity business, even as it offers renewal terms through the end of the year to customers.

Sphere Drake said it will no longer sell reinsurance for hull and cargo as it exits the business entirely.

The reinsurance company said it will focus on its property excess of loss, marine and aviation excess of loss, casualty and alternative risk transfer reinsurance and its US excess and surplus lines of specialty insurance as well as UK and European property insurance.