GoshawK Insurance Holdings plc
38 St Mary Axe, London EC3A 8EX
www.goshawk.co.uk
Designed and produced by College Design, London +44 (0)20 7457 2020
GoshawK Insurance Holdings plc Annual Report and Accounts 2002
INSURANCE
HOLDINGS PLC
Annual Report 
& Accounts 2002 GoshawK is a specialist international
insurance and reinsurance underwriter.
It underwrites direct insurance at
Lloyd’s through Syndicate 102 and
reinsurance in Bermuda through its
subsidiary GoshawK Re.
Contents
01 Highlights 
02 Chairman’s statement 
04 Chief Executive’s statement 
08 Finance Director’s report 
12 Directors and advisers 
13 Directors’ report
15 Corporate governance
17 Directors’ remuneration report 
22 Statement of Directors’ responsibilities 
23 Independent auditors’ report 
24 Consolidated profit and loss account 
26 Consolidated balance sheet
28 Balance sheet 
29 Consolidated statement of cash flows 
30 Notes to the accounts 
51 Notice of Annual General Meeting
GoshawK Insurance Holdings plc
Annual report and accounts 2002 53
Notes
1. Proxies
Only holders of ordinary shares are entitled to attend and vote at this meeting. A member entitled to attend and vote may appoint 
a proxy or proxies who need not be a member of the Company to attend (and on a poll to vote) instead of him or her. Forms of proxy
need to be deposited at the registered office of the Company not later than 48 hours before the time of the meeting. Completion 
of a form of proxy will not preclude a member attending and voting in person at the meeting.
2. Documents on display
The register of directors’ interests in the share capital of the Company, together with copies of service agreements under which
directors of the Company are employed, are available for inspection at the Company’s registered office during normal business hours
from the date of this notice until the date of the annual general meeting and will also be available for inspection at the place of the
annual general meeting for a least 15 minutes prior to and during the meeting.
3. Right to attend and vote
To have the right to attend and vote at the meeting (and also for the purpose of calculating how many votes a person entitled to attend
and vote may cast), a person must be entered on the register of members by no later than 10.30 am on 12 May 2003, being 48 hours
before the time fixed for the meeting. Changes to the register after this time shall be disregarded in determining the rights of any
person to attend or vote at the meeting.
Explanatory Notes:
1. Resolution 6
Following the coming into force of the Directors’ Remuneration Report Regulations 2002 on 1 August 2002 this resolution is to
approve the directors’ remuneration report for the financial year ended 31 December 2002. You can find the report on pages 16 to 20
of this document.
2. Resolution 7
This resolution is to reappoint A S Castell as a director of the Company, having been appointed by the Board since the last annual
general meeting, in accordance with the Company’s articles of association.
3. Resolution 8
Your directors may allot shares or grant rights over shares only if authorised to do so by shareholders. Although the authority granted
at the last general meeting is not due to expire until 4 June 2007, Resolution No. 8 will be proposed as an ordinary resolution to grant
a new authority to allot unissued share capital up to an aggregate nominal value of £2,930,818, representing a third of the total issued
ordinary share capital as at 7 April 2003. If given, this authority will expire on 13 May 2008. The directors confirm that there is no
intention to exercise this authority at present, other than in respect of the Company’s obligations under it’s employee share schemes. 
4. Resolution 9
Your directors also require additional authority from shareholders to allot shares or grant rights over shares where they propose to do
so for cash and otherwise than to existing shareholders pro rata to their holdings. Although the authority granted at the last general
meeting is not due to expire until 4 June 2007, Resolution No. 9 will be proposed as a special resolution to grant such authority. Apart
from rights issues, the authority will be limited to the issue of shares up to an aggregate nominal value of £ 439,623 (being five per cent
of the issued ordinary share capital as at 7 April 2003). If given, this authority will expire on 13 May 2008. 
5. Resolution 10
The directors will be given the necessary power to enable the Company to purchase its own shares. Your directors would intend 
to use this power only after the most careful consideration, having taken account of other investment opportunities, appropriate
gearing levels and the overall financial position of the Company and only if they were satisfied that an increase in expected earnings 
per share would result.
The proposed special resolution specifies the maximum number of shares which may be acquired (which represents approximately 
10 per cent. of the issued ordinary share capital as at 7 April 2003), as well as the maximum and minimum prices at which they may
be bought in accordance with the current requirements of the London Stock Exchange. Such authority will expire on 13 May 2004. GoshawK Insurance Holdings plc
Annual report and accounts 2002 01
> Consolidated profit before tax 
of £10.1 million
> Consolidated profit after tax 
of £14.7 million
> 98% increase in gross premiums
written
> 55% increase in net premiums earned
> Net assets of £166 million and 
total assets increased by 66% to 
£891 million
> Investment returns in excess of
expected long term rates of return
> 2002 year of account – lowest level
of catastrophes and major losses
for at least ten years
> Final dividend of 2p per share
Highlights
Dividends per share (p)
02 3.00
01 1.40
00 3.80
Net earned premiums (£’000)
02 189,740.4
01 122,573.3
00 100,117.6
Earnings per share (p)
02 8.4
01 -7.1
00 3.4
Gross written premiums (£’000)
02 456,538.0
01 230,791.2
00 165,025.6
Gross written premium
+98% Some years ago we determined to build a long term
business on long term capital and we developed an equity
base from which we could ourselves provide the financing
for Syndicate 102 we manage at Lloyd’s. We were at 
the forefront of these moves. In the last year Lloyd’s has
announced its plans for restructuring as a franchise
operation, moving to annual accounting and ending the 
era of the name. We strongly support all of Lloyd’s moves
in these areas.
Lloyd’s provides the licences necessary for our direct
insurance business and we look forward to continuing 
to grow the capacity of our insurance syndicate in that
market. In 2002 we had capacity of £200 million of premium
income. It is now increased to £225 million and we are
considering a further increase during this year. We expect
to continue to be highly selective of the business we write
in a particularly healthy market. Our control systems require
each risk to be fully evaluated and priced and the aggregates
of the risks closely monitored. We have the knowledge and
experience to lead business in each of the fourteen classes
that we write at Lloyd’s. But it is an expensive environment
in which to operate and the risk based capital process
remains complicated and lacks transparency.
Lloyd’s costs, the costs of regulation and a more realistic
capitalisation requirement for writing reinsurance all
provided an incentive for us to investigate the insurance
business that we could develop in Bermuda. Although we
were one of the smaller start up companies in Bermuda in
2002 with an initial capital base of $140 million, GoshawK Re
had a stunningly successful year. We have concentrated 
on building a high quality team of people operating within
tight controls and focused on a limited number of niche
operating fields. We are looking to repeat these earlier
successes during 2003 and are working on a more
ambitious business plan which envisages further increasing
GoshawK Re’s capital base.
Whilst prudent underwriting is one of the keys to a
successful insurance business, management of investments
is clearly another one. Even in the turbulent financial
markets of the past three years, GoshawK has continued
to make strong positive returns on its investments. We
work with top quality fund managers and devote considerable
time and attention to monitoring investment trends, sector
allocations and benchmarking. We continued to exceed 
our long term expected rates of return during 2002. This
may well prove to be an ambitious goal in 2003 when the
United States and European economies are likely to have
reached a low point in the interest rate cycle and when
many opportunities to achieve increased returns from fixed
interest securities are clearly accompanied by increased
risks. We remain strongly risk averse and, in extremely
volatile markets, insistent on making positive rates of return.
GoshawK Insurance Holdings plc
Annual report and accounts 2002
Chairman’s statement
GoshawK is reporting the best results 
in its history. Results like this do not 
just happen even in a strong market.
They also reflect the fact that most of
the strategic decisions that we have
made have been the right ones and that
we have been able to manage our 
way successfully through a period of
enormous change. They are a credit 
to the whole company.
02 GoshawK Insurance Holdings plc
Annual report and accounts 2002 03
The profits from our underwriting activities and the returns
achieved from investments both combined to produce a
healthy result and allow us to propose a final dividend of
2.0p per share, so making a total 3.0p per share for 2002.
We recognise that our shareholders look for a prudent but
progressive dividend policy and we expect to deliver it.
There are many areas of concern in the environment in
which we are operating today and we continue to seek
ways in which we can mitigate the many risks inherent in
our business. We have determined that we should increase
the number of non executive directors on our board in
order to access views from a broader parish. We are
expanding our in-house actuarial group to strengthen our
capacity to model increasingly sophisticated reserving
concepts. We are also adding to our compliance, review
and internal audit group to allow a larger amount of 
pre-audit work to be completed internally. These actions
should also permit us to pursue prompt and ambitious
deadlines with the certainty of being able to achieve them.
2003 is set to be another year of achievement for
GoshawK within our specialist business sectors which
continue to enjoy a strong rating environment. The growth
that we are committed to requires further capital to support
it and we have been increasing the Group’s borrowings and
expanding our banking facilities to provide this capital. We
are committed to use this leverage prudently to fuel further
expansion of the business in the areas that we know best.
David S Hooker
Chairman
19 March 2003
Our shareholders look for a prudent but
progressive dividend policy and we
expect to deliver it.
Net premiums earned
+55% In sharp contrast to last year the insurance industry has
enjoyed a benign claims environment and this, combined
with significant rate increases and excellent investment
returns, has produced GoshawK’s most profitable year 
to date. 
Financial results and dividend
The profit before tax amounts to £10.1 million on gross
premiums written of £457 million and compares with a loss
of £7.4 million on premium income of £231 million in 2001.
After tax, the profit is £14.7 million or 8.4p per share
compared with a loss of £5.2 million or 6.9p per share 
the previous year. 
An interim dividend of 1.0 pence was paid in December
2002. The Board has recommended a final dividend of 
2.0 pence, giving a total for the year of 3.0 pence. The final
dividend is payable on 9 June 2003 to shareholders on 
the register on 9 May 2003.
GoshawK Re in Bermuda 
GoshawK Re has enjoyed an exceptional first year of
operations. It started underwriting in early January with an
initial capital base of $140 million and having achieved 
a credit rating from A.M. Best of A- (Excellent). The capital
base was increased during December by $40 million to
$180 million and this combined with retained earnings 
took total capital and surplus to $217 million by the year
end. This asset gives the Group an increased exposure 
to the US dollar, which is commented on in the Finance
Director’s report. 
GoshawK Re writes only reinsurance business. Business
written during 2002 includes Marine Excess of Loss,
Property catastrophe, Property and some limited Casualty
pro rata Treaty, Satellite reinsurance and a large whole
account quota share contract for SCPIE, a US reinsurer. 
The 1 January renewal season this year has confirmed 
our expectations that rates have continued to harden. Not
only have we seen double digit rate increases in both our
Marine and Property books but underwriting discipline
remains firm across the market with terms and conditions
remaining tight. 
Development of the business underwritten has been overseen
by the Group Underwriting Director, Andrew Gammell, 
who has spent almost half of his time during the year in
Bermuda. We have been successful in recruiting a high
calibre team of underwriters to join GoshawK Re with 
a dedicated lead underwriter each respectively for our
Marine Excess of Loss, Property Catastrophe and Property
pro rata books of business. Our headcount at the year 
end was ten and we expect this to grow further in 2003 as
we continue to strengthen the team. 
GoshawK Insurance Holdings plc
Annual report and accounts 2002
Chief Executive’s
statement
GoshawK’s business in 2002 was, for the
first time, based on two wholly owned
operations, Syndicate 102 at Lloyd’s in
London and GoshawK Re in Bermuda.
GoshawK has enjoyed a very good 
year in 2002 and this is reflected in our
results. GoshawK Re, our reinsurance
business in Bermuda, has exceeded our
demanding expectations in its first year. 
04
Profit after tax
£14.7m GoshawK Insurance Holdings plc
Annual report and accounts 2002 05
Despite the success achieved during the year it remains
important for GoshawK Re to grow. Increased scale will
allow it to attract an increasing spread and quality of
business in its chosen market segments and to increase
the quantity of business led. The Group will therefore focus
its capital resources on increasing the capital and surplus
of GoshawK Re. 
Syndicate 102 at Lloyd’s
The changes to rates and conditions following the World
Trade Center (“WTC”) loss, combined with a very low
incidence of loss at the primary levels and to date no
catastrophic losses, have resulted in an incurred loss ratio
at the twelve month stage of 18% for the 2002 year of
account. This is the best the Syndicate has produced since
1993 and is a very positive indicator.
Rate increases over the fourteen classes of business
written in the Syndicate between 2000 and 2002 have
been between 40% and 190%. During 2002, with the
exception of the War and Terrorism account, rate increases
over the same fourteen classes have been between 
10% and 70%. The result is that less exposure is being
assumed for a greater amount of premium.
In the War account, which provides cover for both Aviation
and Marine hulls, underwriting discipline remains as firm as
during the period immediately after the WTC disaster, and
the threat of imminent war in the Middle East has helped 
to keep the rating at its current high levels. Combined with
the Terrorism and Political Risks account, this amounted to
approximately 15% of premiums written in the 2002 year. 
The Non Marine classes, which include International
Property, have benefited from the general lack of capacity
available in the worldwide markets. This is particularly true
of the US market, where there have been good
opportunities to write quality business on a facultative basis
at excellent rates. The Personal Accident market faced an
almost unprecedented withdrawal of capacity which meant
that the Syndicate could take advantage of building a new
account fairly rapidly with well spread and quality business. 
The Professional Indemnity class, which was a new
addition to the Syndicate in 2001, has been able to take
advantage of a rapidly diminishing number of competitors
and a resulting firming of rates in 2002, which we estimate
at 48% on average.
The Satellite account made up only 2% of the Syndicate 
by premium volume and did not perform well. It is being
reserved on the assumption that no profit will be produced
in the 2002 year.
Until 2002 the proportion of syndicate capacity devoted to
the Marine sector had been falling. However the 2002 year
saw some of the higher rate increases being achieved in
the direct marine classes and as a result these made up
21% of premiums written. The Hull account showed steady
rate increases in the late teens over the year and although
some competitors continued to hold back increases they
were fewer and more restrained. The Cargo account
showed similar characteristics and during 2002 steadily
increased levels of rating by up to 40%. The Marine Liability
account also showed rating improvement in the year and,
although it was not as dramatic as some of the other
classes, it had not suffered their previous poor experience. 
Reinsurance protection
Syndicate 102 has consistently bought a wide reinsurance
programme to protect against many of the uncertainties 
of the business, and to ensure that the aggregate risk
retained is within the acceptable parameters of the Syndicate.
Whilst the Syndicate will maintain its excellent long term
relationships with its key reinsurers, it is more inclined to
retain risk when direct insurance rates and terms make it
more attractive to do so. 
GoshawK has a policy of providing for reinsurance bad debt
based on credit agencies’ ratings of reinsurers. Because 
of the recent decline in credit ratings of some reinsurers,
combined with the additional recoveries expected from our
WTC gross losses, we have increased our overall provision
against reinsurance debtors by an additional £1.9 million 
to £4.2 million.
Resolution of dispute with GIO Insurance Limited
(“GIO”)
We are very pleased to have settled our disputed claim
against GIO. Syndicate 102 bought reinsurance protection
from GIO for the 1998, 1999 and 2000 years of account. 
A dispute arose over collection and the matter was due to
go before arbitration in London in September 2002. However
the matter was settled immediately prior to arbitration. The
whole amount due and owing, which totalled £19 million,
was settled in full. In addition, a further amount, which
represented an agreed discount to the full policy limit, 
was settled at the same time. 
100p
100p
100p
Gross written premiums Net earned premiums
London
Bermuda
London
Bermuda Catastrophes and major losses
2002 has seen the lowest level of catastrophes and major
losses for at least ten years. This has not only impacted 
on our Group results, but also afforded us the opportunity
to build strong reserves in Bermuda. 
Last year GoshawK reported reserve strengthening in respect
of two large contracts, one covering delay and completion
risks for engineering projects and the second covering
aviation risks underwritten by Polygon, an insurer owned 
by five European airlines. GoshawK had already terminated
its involvement in both contracts last year. I am pleased to
report that the run off of these two contracts continues in
line with our expectations and that the additional provision
to reserve last year appears to be at least adequate. 
Other widely reported losses during 2002 have centred 
on marine accidents. Despite exposure to some of these
none are noteworthy in their own right and the marine
results in Syndicate 102 continue to improve. 
WTC disaster
At the time of our interim report, we provided gross and 
net estimates of £77 million and £19 million respectively
from GoshawK’s exposure to WTC. These estimates have
not changed significantly over the last six months. The
gross loss continues to represent a significant margin 
over the incurred losses reported which have remained
largely static at £44.0 million. There has also been little
development in paid claims which have moved from 
£7 million to £9 million over the six month period. 
Our claims team continues to monitor the position closely
each week making a careful analysis of each class of
business, the advised and anticipated claims, and the
reinsurance recoverable. 
Based on the key assumption that the WTC losses arise
from a single event, GoshawK’s management have no
reason to adjust current loss estimates and feel confident
that we are prudently reserved. 
Investment income 
GoshawK’s investment income in 2002 has again exceeded
our long term expected rates of return. These were set 
in 1999 and have not been revised. The out-performance
against this long term benchmark is recorded as a short
term fluctuation in the profit and loss account. 
GoshawK manages its investments through an internal
committee focused on asset allocation and the selection
and monitoring of investment managers. The first and
constantly overriding objective of the committee is to
ensure capital preservation to maintain claims-paying ability
and to prevent erosion of solvency capital. This is balanced
by the need to produce investment returns from investments
that are not correlated with our underlying underwriting 
risk and which are not excessively volatile. 
The Group’s wholly-owned FSA registered subsidiary, 
GHK Asset Management Ltd, launched its first absolute
return fund, GHK First Equity Limited, in September 2001.
It is listed on the Irish Stock Exchange and invests in 
UK equities.
Management of the insurance cycle
GoshawK grew considerably last year, not only as a result
of establishing GoshawK Re in Bermuda but also in the
London operations of Syndicate 102. Gross premiums
written grew by 98% from £230.8 million to £456.5 million
and our headcount grew from 65 to 80 by the year end. 
Insurance is a cyclical business and we are currently
operating in an attractive environment with hard rates and
restricted terms. Continued growth at this point in the cycle
is important to GoshawK’s success and we intend to
achieve this by putting all available capital to work in our
underwriting businesses.
Additional balance sheet gearing has been introduced
through a $40 million term loan from Barclays Bank. 
The proceeds have been used to increase the capital and
surplus of GoshawK Re. We expect the increase in gearing
to help enhance our return on capital at this attractive 
part of the cycle. It will also allow for effective capital
management late in the cycle when rates start to reduce.
People
We have strengthened the senior management team at
GoshawK with the addition of Andrew Castell as Finance
Director. Andrew joined in November from CSFB where 
he advised insurance companies, including GoshawK, 
on a variety of corporate finance transactions.
A strong team of professional managers and underwriters
has been built in Bermuda and we will continue to strengthen
this in 2003. The Group’s actuarial resource based in
London is continually well utilised, and for this reason 
we will look to strengthen the team, both in London and
Bermuda, during 2003.
Outlook for 2003
Our timing and execution in establishing GoshawK Re in
Bermuda last year was successful, and our results reflect
that success. We intend to build on this by increasing the
size of GoshawK Re as well as Syndicate 102.
We expect rates in most classes of business written by the
Group will continue to increase providing a very attractive
environment in which to write both direct insurance and
reinsurance. The macro economic indicators which are
mostly focused on the supply of capital into the industry
indicate that rates and terms are likely to continue to
harden in the near term and are unlikely to return rapidly 
to the lows which were plumbed in 1999 and 2000. 
Your directors believe that GoshawK’s model of owning
100% of its operations at Lloyd’s and in Bermuda, together
with all of the benefits which accrue, sets it apart from its
competitors. We have adequate capital flexibility to take
advantage of current exceptional market conditions and
have every reason to be confident of further improvements
and a very good year in 2003. 
Chris Fagan
Chief Executive
19 March 2003
GoshawK Insurance Holdings plc
Annual report and accounts 2002 06 GoshawK Insurance Holdings plc
Annual report and accounts 2002 07
Locations Finance Director’s report
GoshawK Insurance Holdings plc
Annual report and accounts 2002 08
GoshawK has benefited from the buoyant conditions prevailing in the underwriting market during 2002, with
strong trading in both Syndicate 102 and GoshawK Re. The 2000 and 2001 years of account have, however,
continued to weigh on the results of the Syndicate. GoshawK’s investment portfolio has had another year 
of excellent performance, particularly in the face of a generally unfavourable investment climate. The Group’s
balance sheet has been leveraged and the resultant funds invested in Bermuda, taking GoshawK Re’s capital
to £134.6 million ($216.6 million) as at 31 December 2002.
Technical results
Overall, the Group is reporting a positive underwriting performance of £14.0 million (2001: £(3.8) million). The highlight is an extremely
encouraging first year’s contribution from GoshawK Re of £17.4 million, on net written premiums of £119.2 million. The balance on the
technical account for Syndicate 102 of £(3.4) million (2001: £(2.3) million), however, reflects the revisions to loss estimates, together
with changes relating to longer tail business discussed below. 
The 2000 year of account has closed at a loss of 6.4% of capacity. The 2001 year of account is also expected to be loss-making. 
GoshawK experienced deterioration in the first half of 2002 in the expected losses under the London Excess of Loss account for WTC.
During 2001 this account was impacted by four major losses, starting with the Petrobras P36 loss in March, through the Air Lanka,
Toulouse refinery and WTC losses. As a result of this significant claims experience, the gross ultimate premium estimates for this class
are significantly ahead of plan by virtue of reinstatement premiums receivable. In turn, the increase in ultimate premium receivable on
the account is expected to lead to increased reinstatement premiums payable to the Syndicate’s reinsurers. Overall, this has led to 
a reduction in net ultimate premium estimates, which has had a negative effect on the estimated net ultimate loss position for the year
of account.
The gross loss estimate for WTC stands at £74.6 million, although the impact at the net level after reinsurance recoveries is
considerably less, with estimated losses rising to £18.6 million from the previously reported figure at the end of 2001 of £11.0 million.
Although the increase in gross loss estimates gives the Syndicate greater exposure to reinsurance recovery, 87% of reinsurance
security relating to the WTC loss is rated as A or better. 
The increase in WTC loss estimate since 31 December 2001 is on the Excess of Loss account. We have experienced no material
movement attributable to this event in any other classes. As our current gross loss estimate is close to the policy limits granted in the
Excess of Loss account, there is now limited scope for further deterioration even if the incurred position were to move towards the
gross estimate. The incurred position on WTC appears to have stabilised and as at the year end was £44.0 million. 
Overall, the net loss for WTC to the Syndicate stands within the Realistic Disaster Scenario risk limits set by management. The fact 
that this is the case is a testament to the effectiveness of this key control.
The 2002 year of account is developing promisingly, however, and is expected to be profitable. Whilst there remains a significant
element of unexpired risk, there has been unusually low loss incidence on the year to date.
A more conservative approach has been taken with certain of the longer tail business classes, which form a minority part of the
Syndicate’s overall business mix. In particular, the technical result in London has been impacted by a change in accounting treatment
of Contingent Cost Insurance (“CCI”) business. CCI business has been written by the Syndicate since 1999, during which time some
£27 million of premium has been written. The change has resulted in substantially all the premium previously treated as earned being
written back, with a corresponding write-back of profit taken on the business. The new accounting treatment has been implemented
pending completion of an exercise to develop a more sophisticated actuarial approach to reserving methodology. This treatment
requires that no profit be recognised on a contract until its risk has expired. Conversely, it requires that where a loss event has
occurred in relation to a contract, a specific case reserve be set up, against which the premium is to be applied.
More generally, the Group’s technical result has also been impacted by increased provisions for bad and doubtful debts in the light of
deteriorating credit quality in the global reinsurance industry. Whilst overall credit exposure to reinsurers remains satisfactory, GoshawK
is monitoring developments closely. GoshawK Insurance Holdings plc
Annual report and accounts 2002 09
Combined ratios
The combined ratio for the Group is shown below. This format, which is in line with previous years’ presentation, follows guidelines
issued by the Lloyd’s Market Association to allow comparison with GoshawK’s Lloyd’s-based competitors. Overall, the Syndicate’s
combined ratio has fallen by over 6 percentage points to 100.8%. GoshawK Re’s combined ratio for the year was 83%.
2002 2001
Syndicate 102 GoshawK Re Group Group
1
£m £m £m £m
Gross written premium 330.4 126.1 456.5 221.6
Net premium written 186.3 119.2 305.5 135.2
Net premium earned 124.8 64.9 189.7 115.5
Net claims incurred 78.4 38.7 117.1 83.5
Claims ratio 62.8% 59.6% 61.7% 72.3%
Brokerage 55.5 26.1 81.6 38.1
Operating expenses 15.3 1.7 17.0 8.9
Movement in deferred acquisition costs (13.4) (11.3) (24.7) (5.4)
Total net expenses 57.4 16.5 73.9 41.6
Expense ratio 38.0% 23.3% 32.3% 34.8%
Combined ratio 100.8% 83.0% 94.0% 107.1%
Investment income 7.6 7.7 15.3 4.7
Technical profit
2
(3.4) 17.4 14.0 (5.2)
1 
As GoshawK Re commenced trading in 2002, the Group comparative figures are also the comparatives for Syndicate 102.
2 
In accordance with ALM standards, the technical profit for 2001 has been shown on a pro forma basis, as if GoshawK had owned all of the capacity 
in Syndicate 102 for the 1999 year of account.
Investment Income
The Group’s investment portfolio remains focused on fixed income securities and cash, with a small allocation of 9% to equities and
alternatives (2001: 7%). The long term rates of return have been maintained at 5.8% for fixed income investments and 7.5% for
equities. The Group’s aggregate returns on its investment portfolio exceeded these targets.
Syndicate Funds Other corporate 
funds at Lloyd’s GoshawK Re funds
£m £m £m £m
Quoted US and UK equities and alternatives – 9.8 16.4 1.4
Fixed Income Securities 83.1 39.9 74.0 5.0
Cash 14.0 – 59.6 5.4
Total 97.1 49.7 150.0 11.8
Overall Returns:
2002 3.8% 2.7% 10.3% 4.7%
2001 6.1% 4.7% N/A 3.3% Finance Director’s report
(continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 10
Expenses
Expenses increased in 2002 as the Group continued to grow. Corporate expenses increased to £8.3 million in 2002 from £5.4 million
in 2001, whilst overall expenses, excluding brokerage commissions, increased to £19.2 million from £11.3 million. The Group has
increased significantly in scale in recent years and its infrastructure has increased accordingly. Nevertheless, GoshawK is now
beginning to enjoy scale economies, with overall expenses as a percentage of gross written premium falling from 7.7% in 1999 to
4.2% in 2002.
1999 2000 2001 2002
Gross written premium £104.1m £165.5m £230.8m £456.5m
Overall expenses
1
£8.0m £8.4m £11.3m £19.2m
% of gross written premium 7.7% 5.1% 4.9% 4.2%
Corporate expenses
1
£4.0m £4.2m £5.4m £8.3m
% of gross written premium 3.8% 2.5% 2.3% 1.8%
Underwriting expenses £4.0m £4.2m £5.9m £10.9m
% of gross written premium 3.8% 2.5% 2.6% 2.3%
1
Overall and corporate expenses are administrative expenses incurred in the year. Some of the expenses associated with underwriting are apportioned
to underwriting years of account
Tax
The Group’s corporation tax credit of £4.6 million (2001: 2.2 million) was comprised of a credit of £3.4 million in tax relating to losses
incurred in Syndicate 102 and a reversal of a provision of £1.2 million made in respect of the 1997 acquisition of Matheson Lloyd’s
Investment Trust. No corporation tax charge was incurred in respect of the profits of GoshawK Re during the year as no dividends
were declared or paid, although any future dividend payments by GoshawK Re will attract UK corporate tax at the prevailing rate.
The 2001 tax charge has been restated to reflect the adoption of FRS 19. The adjustment relates to a deferred tax liability in respect 
of an intra-Group transfer of ownership of capacity on Syndicate 102. The deferred tax liability is expected to reverse over time as the
carrying value of capacity on the group’s balance sheet is amortised to nil.
Capital and gearing
As at 31 December 2002, GoshawK’s total assets were £891 million (2001: £533 million). The group deployed aggregate solvency
capital of £219 million (2001: £81 million) across its operations in London and Bermuda, supporting net earned premium of 
£189.7 million (2001: £122.6 million). The Group’s solvency capital was deployed as follows:
2002 2001
£000 £000
Syndicate 102
Cash and investments 49,705 45,737
Barclays letter of credit facility 20,000 20,000
Non-recourse letter of credit 15,000 15,000
GoshawK Re
Admissible net assets 134,563 –
Total 219,268 80,737
Gearing in the Lloyd’s business is focused on letter of credit facilities, whilst borrowing at the Holding Company level is applied to
funding GoshawK Re. The Group had £24.8 million of term loan borrowings at the year end and used these funds to increase the
capital and surplus of GoshawK Re. 
It is the Group’s strategy to make use of gearing during favourable market conditions for underwriting, reducing its gearing as the
market softens. On this basis, GoshawK would expect to consider further increases to its borrowings during the course of the 
current year. GoshawK Insurance Holdings plc
Annual report and accounts 2002 11
Foreign exchange risk management
GoshawK’s principal operating currencies are US dollars and sterling, whilst its reporting currency is sterling. As a result, it is exposed
to foreign exchange risk in two key areas: through its investment in GoshawK Re and through its non-sterling denominated
underwriting in London and Bermuda.
GoshawK Re’s solvency capital is primarily comprised of assets denominated in US dollars. This reflects the fact that substantially all 
of GoshawK Re’s business is denominated in US dollars and ensures that GoshawK Re’s ability to underwrite its planned level of
premium is not materially exposed to exchange rate fluctuations. This holding of US dollar assets gives rise to a translation exposure 
in the Group’s balance sheet, however, during 2002, forward foreign exchange contracts were used to offset part of this exposure. 
In addition, GoshawK’s term loan borrowings, which have been applied to provide further funding for GoshawK Re, are denominated 
in US dollar. This provides further protection against fluctuations in the sterling value of GoshawK Re’s US dollar denominated solvency
assets. The effect of this offset was minimal in 2002, as the Barclays term loan was drawn on 30 December. A movement in the
sterling value of GoshawK’s US dollar assets of £10.5 million was accounted for as a reserve movement in 2002 (2001: Nil), reflecting 
a weakening of some 10% in the US dollar against sterling during the year.
Much of the Group’s underwriting income is subject to foreign exchange risk. GoshawK does not seek to manage this risk, given the
uncertainties inherent in the timing of its underwriting cash flows.
Net asset value
Net assets excluding intangible assets were maintained at £150.6 million (2001: £150.6 million). Net assets fell marginally during the
year, however, as at 31 December 2002, net assets were £165.7 million (2001: £166.6 million).
Based on a total of 175.8 million shares in issue at 31 December 2002, net assets per share were 94 pence (2001: 95 pence) and
tangible net assets per share were 86 pence (2001: 86 pence).
Accounting policies
The 2002 accounts have been prepared on an annual accounting basis and are consistent with the annual accounting policy adopted
in 1999. The Lloyd’s 2000, 2001 and 2002 years of account contribute to the result in 2002 as well as movements in prior year reserves.
Andrew Castell
Finance Director 
19 March 2003 Directors and advisers
GoshawK Insurance Holdings plc
Annual report and accounts 2002 12
The directors of the Company are as follows:
David Hooker Chairman 
He read law at Cambridge and petroleum geology at the Royal School of Mines. Between 1978 and 1993 he was managing director 
of a number of natural resources companies, including Candecca Resources Limited, Plascom Limited (a subsidiary of Tarmac plc) 
and Aberdeen Petroleum plc. From 1993 to the end of 1995 he was chairman of Bakyrchik Gold plc. He was appointed a director of the
Company in March 1995 and was appointed Chairman in 1996. He is also a non-executive director of Oceaneering International Inc., 
a US corporation and various other companies.
Chris Fagan Chief Executive 
He is a qualified accountant with experience in the insurance business. He established, built and successfully sold BCF Holdings Limited,
a private financial services business between 1985 and 1992. He then spent 5 years with Sedgwick Group becoming managing
director for Sedgwick Europe. More recently he was Chief Operating Officer for Murray Lawrence Group (renamed Amlin plc following
its merger with Angerstein). He joined Goshawk on 1 February 1999 and was appointed Chief Executive on 5 June 2002.
Andrew Gammell Underwriting Director 
He joined C.T. Bowring (Underwriting Agencies) Ltd as an underwriting assistant on its Marine Syndicate 28 in 1967 and in 1976 was
appointed deputy underwriter. In September 1981 he resigned from this position in order to set up Gammell Kershaw (now GoshawK
Syndicate Management) and establish Syndicate 102. He became a member of Lloyd’s in 1970 and has been a member of each
syndicate for whom he has worked. He was the active Underwriter of Syndicate 102 from its formation until his resignation on 
31 December 2000. He resigned as a Member of Lloyd’s with effect from 31 December 1997, but continues to underwrite as a partner
in a Scottish Limited Partnership, Gammell SLP .
Andrew Castell Finance Director
He read law at Oxford, is a Chartered Accountant and worked for some years as an investment banker. He began his career at Touche
Ross (now Deloitte & Touche), initially in the Financial Institutions Group of the Audit Division and latterly as a management consultant,
specialising in corporate treasury and risk management. After five years at Touche Ross, he joined NatWest Markets’ corporate finance
business, which became Hawkpoint Partners. In 1999 he moved to the Investment Banking Division of Donaldson, Lufkin & Jenrette
(subsequently acquired by Credit Suisse First Boston) where he specialised in the Insurance and Reinsurance sectors, with particular
emphasis on Lloyd’s insurance vehicles. He joined GoshawK in November 2002.
Simon Miller Non-executive Director 
He read law at Cambridge and was called to the Bar. He spent ten years in the City, working for Lazard Brothers and County Bank where
he became a director in 1984. From 1987 to 1991 he was chief executive of a publicly quoted engineering company. He is chairman of
Dunedin Capital Partners Limited and JP Morgan Fleming Managed Income plc. He is a non-executive director of various other companies. 
George Robb Non-executive Director
He qualified as a Writer to the Signet and practised as a solicitor until 1971 when he became wholly involved in investment management.
In 1994 he established Asset Management Investment Company plc and was appointed Managing Director following the floatation. 
He is Chairman of Premier Recovery Trust plc and a director of Aberdeen Development Capital PLC, Britannic Global Income Trust PLC
and other companies.
The advisers of the Company are as follows:
Secretary
A S Fox
Auditors
Ernst & Young LLP
Rolls House
7 Rolls Buildings
Fetter Lane
London EC4A 1NH
Broker to the company
Numis Securities Limited
138 Cheapside
London EC2V 6BJ
Bankers
Bank of Scotland
The Mound
Edinburgh EH1 1YZ
Barclays Bank plc
54 Lombard Street
London EC3V 9EX
Registrar
Lloyds TSB Registrar Scotland
PO Box 28448
Finance House
Orchard Brae
Edinburgh EH4 1WQ
Registered office and place of business
38 St Mary Axe
London EC3A 8EX
Tel: 020 7621 0777
Fax: 020 7929 7299
Web: www.goshawk.co.uk
Registered number
2517324 Directors’ report
GoshawK Insurance Holdings plc
Annual report and accounts 2002 13
The directors present their report and accounts for the year ended 31 December 2002.
Results and dividends
The results of the year show a profit on ordinary activities before taxation of £10.1m (2001 loss – £7.4m).
An interim dividend of 1.0p per share was paid to shareholders on 5 December 2002. The directors recommend that a final dividend 
of 2.0 p per share be paid.
Principal activities
The Group’s principal activities during the year developed from being a Lloyd’s Managing Agent and Corporate Member of Lloyd’s 
to include a wholly owned reinsurance company in Bermuda. A review is given in the Chief Executive’s statement. 
Future developments
The Group will continue to develop its insurance and reinsurance activities in the U.K. and Bermuda, as well as its U.K. based
investment management business.
Substantial shareholdings
As at 10 March 2003, the Company had been notified of the holdings of 3% or more of the Company’s issued share capital shown below:
Number of ordinary % of
shares of 5p each issued capital
CGNU plc 19,166,074 10.89%
Fidelity International Ltd 17,549,709 9.98%
Aberforth Partners 12,163,000 6.91%
Standard Life 8,155,321 4.64%
Invesco Perpetual 8,064,309 4.59%
Legal and General Group plc 7,385,850 4.20%
A J Gammell, immediate family and trusts 7,342,064 4.17%
SCPIE Holdings Inc 7,151,446 4.07%
Directors and their interests
Details of the directors of the Company are shown on page 3. The directors’ interests in the share capital of the Company, as defined
by the Companies Act 1985, are as follows:
At 31 December 2002 At 31 December 2001
ordinary shares of 5p ordinary shares of 5p
A J Gammell, immediate family and trusts 7,342,064 7,302,064
D S Hooker 362,642 362,642
C M Fagan 90,000 90,000
A S Castell – –
S E C Miller 10,000 10,000
G A Robb 35,000 35,000
*A J Gammell’s shareholding includes non-beneficial interests of 622,248 shares. 
The above figures do not include the shares invested for the purpose of matching awards which are detailed on page 18. 
The interests of the directors were unchanged at 10 March 2003, except for shares bought under the LTIP and disclosed in the
Remuneration Committee’s report.
No director has any interest in the shares of any subsidiary company.
The executive directors, along with other employees, have been granted options over ordinary shares. Awards were also granted 
to directors pursuant to the Company’s Long Term Incentive Plan. Details of these interests are disclosed in the Remuneration
Committee’s report.
Charitable and political donations
During the year the Group made charitable contributions totalling £5,000 (2001 – £4,367). No political donations were made in the year.
Investment managers
The Company has investment management agreements with Raphael Asset Management Limited, Credit Agricole Asset Management
Limited and UBS Asset Management Limited. Fees are charged at the rate of 0.3% per annum (payable quarterly) on the funds
managed. The contracts may be terminated by three months written notice. Directors’ report 
(continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 14
Share incentive plan
At the Annual General Meeting of GoshawK Insurance Holdings plc held on 30 May 2001 shareholders authorised the directors of that
Company to establish a Share Incentive “Plan” for all employees of the Group. On 19 April 2002 the directors adopted the plan which
was subsequently approved by the Inland Revenue on 1 May 2002.
The following were members of the Plan Scheme as at 31 December 2002 and 4,590 shares were held by Trustees of the Plan 
on their behalf:
Name Number of shares
D S Hooker 1,530
A J Gammell 1,530
C M Fagan 1,530
Auditors
Ernst & Young LLP have expressed their willingness to continue in office as auditors and in accordance with Section 385 of the
Companies Act 1985 a resolution proposing their reappointment will be submitted at the annual general meeting.
Statement of supplier payment policy
It is the Company’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between the
Company and its suppliers, provided that all trading terms and conditions have been complied with. At 31 December 2002, the
Company had an average of 10 days’ purchases outstanding in trade creditors.
Going concern
After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational
existence in accordance with the business plan for the foreseeable future. For this reason, they continue to adopt the going concern
basis in preparing the accounts.
By order of the Board.
Andrew Fox
Company Secretary
19 March 2003 GoshawK Insurance Holdings plc
Annual report and accounts 2002 15
The directors are pleased to report that the Company has been in compliance with Section 1 of the Combined Code prepared by the
Committee on Corporate Governance chaired by Sir Ronald Hampel and with the Turnbull Guidance on Internal Control with one
exception that is described in the following statement:
Statement by the directors on compliance with the provisions of the Combined Code
The Company has been in full compliance with the provisions set out in Section 1 of the Combined Code throughout the year with the
exception of having only two non-executive directors of the Company serving as members of the Audit and Remuneration Committees.
Neither has been designated as more senior than the other. With the exception of the above, the Company is compliant. G A Robb 
is chairman of the Audit Committee.
The Board
D S Hooker, A J Gammell and C M Fagan, Executive directors and S E C Miller and G A Robb, Non-executive directors served
throughout the year. A S Castell was appointed a director of the Company on 11 November 2002 and served for the remainder of 
the year. The director biographies appear on page 3. The Board is responsible to the shareholders for the control and management of
the Group. The two non-executive directors are independent. 
The Board meets regularly throughout the year to:
• make strategic corporate decisions;
• assess the performance of Syndicate 102;
• assess the performance of GoshawK Re;
• establish criteria for the management of the Group’s investment portfolio;
• consider nominations for directors of the Company;
• assess the Group’s systems of internal control and review its effectiveness; and
• report to shareholders.
The Secretary, A S Fox, ensures that the directors receive all the Board papers in a timely manner prior to each Board meeting so 
that they are able to consider the issues to be discussed. 
The directors have reviewed the membership and structure of the Board and committees of the Company and of its subsidiaries. 
The directors note that the operating subsidiaries, Goshawk Reinsurance Limited and GoshawK Syndicate Management Limited, have
two non-executive directors on their Boards. The Board is seeking to appoint a further non-executive director. The membership of the
Boards committees will be examined following the appointment of a further non-executive director.
Audit Committee
The Audit Committee comprises the two non-executive directors. It is responsible for the accounting policies and the adequacy of the
Group’s financial reporting process. It reviews the Annual Accounts and Interim Report. It meets at least twice a year with the Company’s
auditors. The Chairman, the Chief Executive and Finance Director attend by invitation from time to time.
Remuneration Committee
The Remuneration Committee comprises the two non-executive directors. It is responsible for the review of the salaries of the Group’s
employees including the executive directors, the determination and distribution of the bonus pool for each financial year to all Group
executive directors and designated employees. S E C Miller is chairman of the committee. The Committee meets biannually.
Nomination Committee
The Nomination Committee comprises the entire board of directors. It is responsible for the review of the constitution of the Board 
and ensures appropriate nominations for election at the Annual General Meeting. The Committee meets at least annually. D S Hooker
is chairman of the Committee.
Investment Committee 
The Investment Committee comprises the Chairman of the Board, the Chief Executive, Finance Director and Company Secretary. 
The committee meets regularly with the Investment Fund Managers to set benchmarks, discuss policy and assess performance. The
committee reports to the Boards of the Holding Company and the Managing Agent. D S Hooker is chairman of the committee.
Shareholder relations
The Board recognises the importance of communications with Shareholders. Meetings are arranged with Institutional Shareholders 
to review the Company’s interim and year end results, and frequently throughout the year. The Chairman, Chief Executive and Finance
Director report separately to Shareholders in the Annual Report and Accounts. The executive directors give regular briefings to analysts
who cover the insurance sector. The Board welcomes Shareholders and their participation at the Company’s Annual General Meeting.
Details of resolutions to be proposed at that meeting on 4 June 2003 can be found in the notice of the meeting.
Corporate governance Corporate governance 
(continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 16
Management structure
Authority to operate the various subsidiary companies is delegated to the management of those companies. Both the Chairman and
either the Group Underwriting Director or the Chief Executive serve as directors of the principal trading companies in the Group.
Reports of the subsidiary companies activities are made at each Board meeting.
Internal controls
The Board recognises that it is responsible for the Group’s system of internal control and for reviewing its effectiveness. 
Identification and evaluation of business risks
There is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. Regular reporting 
and review of the Company’s operations took place throughout 2002. 
Major business risks which merit close monitoring and control have been identified within the following categories:
• Underwriting;
• Claims;
• Reinsurance;
• Finance including investments;
• Strategy;
• Employment of staff; and
• Compliance with Lloyd’s, Combined Code and Financial Services Authority Regulations.
The Group’s system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives,
and can only provide reasonable and not absolute assurance against material misstatement or loss. The key process used by the
Board to evaluate the risks involved is by a Quarterly Group Risk Assessment Report, which is reviewed at each Board meeting.
Information and reporting systems
The Group’s comprehensive and financial reporting procedures include detailed budgets and business forecasts, together with a five
year rolling plan. The Board reviews and approves them. Performance is monitored and relevant action is taken throughout the year 
by the subsidiary companies Boards.
Investment appraisal
A budgetary process and authorisation levels regulate capital expenditure. Detailed written proposals have to be submitted to the
subsidiary companies Boards.
Audit Committee
The Audit Committee receives from the external auditors a report of any internal control weaknesses found during the course of the
audit. The Board of GoshawK Syndicate Management Limited includes two further non-executive directors who are also members 
of its Audit Committee. The Committee receives a similar report from the auditors of the Syndicate.
Independent Review Committee
The Independent Review Committee of the Managing Agent is responsible for organising and carrying out methodical reviews of
systems and controls. In addition, the Chairman of the Independent Review Committee, A J Gammell, has regular meetings with each
class underwriter and the Active Underwriter to review underwriting statistics and to challenge underwriting decisions. A monthly report
is submitted to the Board of the Managing Agent.
The following activities have been delegated to third parties:
• Management of Corporate and Syndicate funds under the supervision of the Investment Committee;
• Custodial services relating to investments;
• Registrar facilities for the Company;
• Software and maintenance of the computer systems; and
• Credit Control.
David Hooker
Chairman
19 March 2003 This remuneration report sets out the Company’s policy on the remuneration of executive and non executive directors together with
details of directors’ remuneration packages and service contracts.
Unaudited part of report
Remuneration Committee and advisers
For the 2002 and 2003 financial years ending 31 December, the Remuneration Committee, which comprises only non executive
directors, has formulated remuneration policy and recommended executive directors’ remuneration packages. The policies and
packages for all directors have been approved by the entire Board.
The Remuneration Committee is chaired by S E C Miller and includes G A Robb. The Committee is regularly assisted by The Carlton
Sloman Group, Human Resource Consultants and places reliance on various external surveys of remuneration packages within the
insurance industry. The Carlton Sloman Group was appointed by the Board to assist the Company with Human Resource matters.
Remuneration policies
The Remuneration Committee policy is to provide a remuneration package for executive directors, which recognises responsibilities, 
is competitive within the industry, is sufficiently attractive to retain these directors, and rewards successful performance. The
Remuneration Committee expects the policy to be compliant with best practice. The Finance Director reports to the Committee on 
the financial performance outlined in the conditions detailed below. The non-executive directors’ fees are determined by the Chairman
of the Company in consultation with the Chairman of the Remuneration Committee and the Carlton Sloman Group.
Remuneration packages 
The remuneration package consists of salary and benefits which include pension contributions, share options or allocations under the
Long Term Incentive Plan, and a bonus plan. The executive directors may also participate with all members of staff in the Company’s
Share Incentive plan.
• Bonus plan
The Remuneration Committee have addressed a cash bonus plan for executive directors. The bonus is limited to up to 125% of the
director’s salary and the level of award made in each year is dependent on the Company and the individual executive director’s
performance during the previous financial year. 
The current plan is based on performance during the 2002 and 2003 financial years and uses four different criteria to measure
performance. Each of these can account for a quarter of the maximum bonus. First part assesses earnings per share against plan. 
The second part compares Company return on capital compared with peer group performance. The constituent members of the peer
group are members of the FTSE Insurance sector. The third assesses Company performance and the fourth measures individual
contribution, which are determined by the Remuneration Committee, after appraising each individual’s contribution and the Company
performance. 
The bonus payable to the three executive directors who were employed by the Company throughout 2002, has been assessed by 
the Remuneration Committee on this basis and has been accrued in the accounts for the year ended 31 December 2002.
• Share options 
Before the Company initiated a new Long Term Incentive plan, an unapproved share option plan was in place in which the executive
directors all participated. The purpose of the plan was to allow key personnel to benefit alongside shareholders as the share price
increased. Three executive directors hold options pursuant to this scheme. The options vest after a holding period and may only be
exercised after vesting and provided the Company has reported profits and distributed a dividend in each of the previous two years.
The interests of the directors are as follows:
Unapproved scheme
At 1 Granted At 31
Exercise January during the December
Exercisable price 2002 year 2002
A J Gammell June 2003 to June 2007 55.0p 292,500 – 292,500
D S Hooker June 2003 to June 2007 55.0p 292,500 – 292,500
C M Fagan June 2003 to June 2007 55.0p 112,500 – 112,500
• Long Term Incentive Plan
A Long Term Incentive plan was established in November 1999 to better align the interests and efforts of executive directors and
certain senior underwriters with the Company’s objective of enhancing value for the shareholders. The plan is related to the Company’s
share price performance and allows for conditional and matching awards of shares. The numbers of shares awarded under the plan
are limited by the terms of the plan. Following its establishment, participants in the Long term incentive plan cannot also be awarded
new options under any other share option plan during the same calendar year.
GoshawK Insurance Holdings plc
Annual report and accounts 2002 17
Directors’ remuneration report Directors’ remuneration report 
(continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 18
Conditional awards, which are determined by the Remuneration Committee, are made to participants at the beginning of a three year
vesting period. The actual number of shares to which the participant obtains rights depends on the achievement of performance
conditions. The Remuneration Committee also determines the level of matching awards to encourage participants to invest in shares 
of the Company. These matching awards are also subject to a three year vesting period and are based on the same performance
criteria as the conditional awards.
The performance criteria are dependent on the price of the Company’s shares and the net asset value per share relative to the share
price at any time during a two year performance period immediately following the three year vesting period. Details of the performance
criteria set and of the awards made each year are as follows:
1999 Award
Performance Condition Conditional award Matching award
Share price 140p and in excess of 1.2 times NAV 20% 0.5 for 1
Share price 155p and in excess of 1.3 times NAV 40% 1 for 1
Share price 170p and in excess of 1.4 times NAV 60% 1.5 for 1
Share price 185p and in excess of 1.5 times NAV 80% 2 for 1
Share price 200p and in excess of 1.6 times NAV 100% 2.5 for 1
2000 Award
Performance Condition Conditional award Matching award
Share price 110p and at least matches NAV 20% 0.5 for 1
Share price 125p and in excess of 1.1 times NAV 40% 1 for 1
Share price 140p and in excess of 1.2 times NAV 60% 1.5 for 1
Share price 155p and in excess of 1.3 times NAV 80% 2 for 1
Share price 170p and in excess of 1.4 times NAV 100% 2.5 for 1
2001 Award
Performance Condition Conditional award Matching award
Share price 110p and at least matches NAV 20% 0.5 for 1
Share price 125p and in excess of 1.3 times NAV 40% 1 for 1
Share price 140p and in excess of 1.4 times NAV 60% 1.5 for 1
Share price 155p and in excess of 1.5 times NAV 80% 2 for 1
Share price 170p and in excess of 1.6 times NAV 100% 2.5 for 1
2002 Award
Performance Condition Conditional award Matching award
Share price 95p and at least matches NAV 20% 0.5 for 1
Share price 110p and in excess of 1.1 times NAV 40% 1 for 1
Share price 125p and in excess of 1.2 times NAV 60% 1.5 for 1
Share price 140p and in excess of 1.3 times NAV 80% 2 for 1
Share price 155p and in excess of 1.4 times NAV 100% 2.5 for 1
Shares for use in the plan are ordinary shares in the Company which are transferred out of the GoshawK Insurance Holdings plc
Employee Benefit Trust (EBT), a discretionary trust set up to administer the plan. The Company funds the anticipated payout under 
the plan by ensuring that the trustee has sufficient funds to purchase the shares through the EBT. GoshawK Insurance Holdings plc
Annual report and accounts 2002 19
The interests of the directors in number of ordinary shares (under the long term incentive plan) were as follows:
Maximum
Conditional award
Scheme Exercisable No of shares
A J Gammell 1999 Dec 2002 to Dec 2004 110,132
2000 Dec 2003 to Dec 2004 129,710
2001 Dec 2004 to Dec 2006 359,597
Total granted at 31.12.2001 599,439
2002 Dec 2005 to Dec 2007 446,429
Total granted at 31.12.2002 1,045,868
D S Hooker 1999 Dec 2002 to Dec 2004 63,877
2000 Dec 2003 to Dec 2005 76,087
2001 Dec 2004 to Dec 2006 267,857
Total granted at 31.12.2001 407,821
2002 Dec 2005 to Dec 2007 357,143
Total granted at 31.12.2002 764,964
C M Fagan 1999 Dec 2002 to Dec 2004 59,471
2000 Dec 2003 to Dec 2005 70,048
2001 Dec 2004 to Dec 2006 227,679
Total granted at 31.12.2001 357,198
2002 Dec 2005 to Dec 2007 394,345
Total granted at 31.12.2002 751,543
A S Castell 2002 Dec 2005 to Dec 2007 118,644
Total granted at 31.12.2002 118,644
In addition the directors have invested the following amounts which are subject to matching awards:
Share Number
Vesting Investment £ price £ of shares
A J Gammell Dec 2002 to Dec 2004 75,000 0.65 115,385
Dec 2003 to Dec 2005 80,550 0.98 82,194
D S Hooker Dec 2002 to Dec 2004 43,500 0.65 66,923
Dec 2003 to Dec 2005 47,250 0.98 48,214
C M Fagan Dec 2002 to Dec 2004 38,475 0.65 59,192
Dec 2003 to Dec 2005 43,500 0.98 44,388 Directors’ remuneration report
(continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 20
Service contracts
It is the policy of the Company to provide Contracts of Employment for each executive director and letters of appointment for the 
non-executive directors, which state the terms of their employment. The Nomination Committee agree the terms for each new director.
At the early termination of a contract by the Company compensation will be paid to the director for the period of the notice. Existing
contracts comply with this policy. The service contracts and letters of appointment of the directors include the following terms:
Remaining Notice 
Executive directors Date Age term period
D S Hooker 20/11/96 60 To age 63 12 months
A J Gammell 20/11/96 54 To age 60 12 months
C M Fagan 01/02/99 40 To age 60 12 months
A S Castell 01/11/02 34 To age 60 12 months
Non-executive directors
S E C Miller 13/11/96 50 No fixed term 12 months
G A Robb 15/11/96 60 No fixed term 12 months
D S Hooker’s service agreement was extended to age 63 on 12 September 2002. A S Castell was appointed to the Board on 
1 November 2002 and he offers himself for election at the Annual General Meeting on 4 June 2003. Messrs. A J Gammell and 
S E C Miller retire by rotation and offer themselves for re-election at the Annual General Meeting. 
Performance
The following line graph details for the financial year ended 31 December 2002 and for each of the previous four financial years the
total shareholder return on a holding of the Company’s ordinary shares compared to the corresponding change in a hypothetical
holding of shares in the FTSE Insurance sector. The FTSE Insurance sector was selected as the Company is a constituent member.
Total shareholder return 
0
20
40
60
80
100
120
140
160
1998 1999 2000 2001 2002 2003
Goshawk
FTSE Insurance Sector GoshawK Insurance Holdings plc
Annual report and accounts 2002 21
Audited part of report
Salary and benefits
The salary and benefits of the directors of the Company for the years ended 31 December 2000 and 2001 are as follows:
Basic Performance
salary related Total Total
and fees Benefits (3) bonuses Pensions 2002 2001
£’000 £’000 £’000 £’000 £’000 £’000
Executive directors:
A J Gammell 285 2 116 57 460 326
D S Hooker 231 3 123 80 437 201
C M Fagan 238 1 266 35 540 187
A S Castell 20 – 15 – 35 –
Non-executive directors:
S E C Miller 22 – – – 22 19
G A Robb 22 – – – 22 19
The table also includes amounts for pension contributions. A J Gammell, C M Fagan and A S Castell are members of the Company
money purchase scheme with the Standard Life Assurance Company. D S Hooker is a member of another money purchase scheme.
The Company contributes 20% of salary in respect of A J Gammell and D S Hooker and 15% in respect of C M Fagan and A S Castell.
Share incentive plan
At the Annual General Meeting of GoshawK Insurance Holdings plc held on 30 May 2001 shareholders authorised the directors of the
Company to establish a share incentive plan for all employees of the Group. On 19 April 2002 the directors adopted the plan, which was
subsequently approved by the Inland Revenue on 1 May 2002. The interests of the directors as at the date of this report are as follows:
Executive directors No of shares
A J Gammell 1,530
D S Hooker 1,530
C M Fagan 1,530
A S Castell Nil
The market value of shares during 2002 was as follows:
Market price of shares at 31 December 2002 130.0p per share
Highest price quoted in 2002 133.5p per share
Lowest price quoted in 2002 80.0p per share
The report will be put to an advisory vote of the Company’s shareholders at the Annual General Meeting to be held on 4 June 2003.
By order of the Board
Simon Miller
Chairman, Remuneration Committee 
19 March 2003 Statement of Directors’ responsibilities
in respect of the accounts
GoshawK Insurance Holdings plc
Annual report and accounts 2002 22
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs 
of the Company and of the Group and of the profit and loss of the Group for that period. In preparing those accounts, the directors 
are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; 
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained 
in the accounts; and
• prepare the accounts on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Group and enable them to ensure that the accounts comply with the Companies Act 1985. They are also responsible
for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities. Independent auditors’ report
to the members of Goshawk Insurance Holdings plc
GoshawK Insurance Holdings plc
Annual report and accounts 2002 23
We have audited the Group’s financial statements for the year ended 31 December 2002 which comprise the Consolidated Profit 
and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement, Statement of Total
Recognised Gains and Losses, and the related notes 1 to 35. These financial statements have been prepared on the basis of the
accounting policies set out therein. We have also audited the information in the Directors’ Remuneration Report that is described as
having been audited. 
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them 
in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions 
we have formed.
Respective responsibilities of directors and auditors 
The directors’ responsibilities for preparing the Annual Report, the Directors’ Remuneration Report and the financial statements in
accordance with applicable United Kingdom law and accounting standards are set out in the Statement of Directors’ Responsibilities. 
Our responsibility is to audit the financial statements and the part of the Directors’ Remuneration Report to be audited in accordance with
relevant legal and regulatory requirements, United Kingdom Auditing Standards and the Listing Rules of the Financial Services Authority. 
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements 
and the part of the Directors’ Remuneration Report to be audited have been properly prepared in accordance with the Companies Act
1985. We also report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the Company 
has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law or the Listing Rules regarding directors’ remuneration and transactions with the Group is not disclosed. 
We review whether the Corporate Governance Statement reflects the Company’s compliance with the seven provisions of the
Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not required to consider whether the
Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the Group’s corporate
governance procedures or its risk and control procedures. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.
This other information comprises the Directors’ Report, unaudited part of the Directors’ Remuneration Report, Chairman’s statement
and Chief Executive’s Statement, Finance Directors Report and Corporate Governance Statement. We consider the implications for our
report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities
do not extend to any other information. 
Basis of audit opinion 
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part 
of the Directors’ Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgements made
by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s
circumstances, consistently applied and adequately disclosed. 
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order 
to provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’
Remuneration Report to be audited are free from material misstatement, whether caused by fraud or other irregularity or error. 
In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements and the
part of the Directors’ Remuneration Report to be audited.
Opinion
In our opinion:
• the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 31 December 2002
and of the profit of the Group for the year then ended; and 
• the financial statements and the part of the Directors’ Remuneration Report to be audited have been properly prepared in
accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
London
19 March 2003 Consolidated profit and loss account
for the year ended 31 December 2002
GoshawK Insurance Holdings plc
Annual report and accounts 2002 24
Technical account – General business 
2002 2001
Notes £’000 £’000
Earned premiums, net of reinsurance
Gross premiums written:
Continuing operations 4 456,464 231,647
Discontinued operations 5 74 (856)
456,538 230,791
Outward reinsurance premiums (151,045) (87,073)
Net premiums written 305,493 143,718
Change in the gross provision for unearned premiums (127,745) (20,114)
Change in the provision for unearned premiums – reinsurers’ share 11,992 (1,031)
Change in the net provision for unearned premiums (115,753) (21,145)
Net earned premiums 189,740 122,573
Allocated investment return transferred from the non-technical account
6 15,370 7,254
205,110 129,827
Claims incurred, net of reinsurance
Claims paid:
Gross amount (134,177) (131,914)
Reinsurers’ share 55,719 59,245
(78,458) (72,669)
Change in provision for claims:
Gross amount (152,950) (71,436)
Reinsurers’ share 114,358 51,965
(38,592) (19,471)
Net claims incurred (117,050) (92,140)
88,060 37,687
Net operating expenses 7 (73,914) (41,445)
Investment expenses and charges (96) (91)
Balance on technical account – general business
Continuing operations 4 14,050 (2,303)
Discontinued operations 5 – (1,546) GoshawK Insurance Holdings plc
Annual report and accounts 2002 25
Non-technical account
Restated
2002 2001
Notes £’000 £’000
Balance on the technical account general business
Continuing operations 4 14,050 (2,303)
Discontinued operations 5 – (1,546)
Investment Income 6 16,151 8,186
Unrealised gains on investments 6 2,569 (280)
Investment expenses and charges 6 (235) (143)
Allocated investment return transferred to technical account 6 (15,370) (7,254)
Other income 8 1,194 1,299
Other charges (including amortisation) 9 (8,271) (5,353)
Operating profit/(loss) 10,088 (7,394)
Comprising:
Operating profit/(loss) (based on longer term investment return) 7,610 (7,192)
Short term fluctuations in investment return 6 2,478 (202)
Profit/(loss) on ordinary activities before taxation 10,088 (7,394)
Tax on profit/(loss) on ordinary activities 11 4,626 2,177
Profit/(loss) on ordinary activities after taxation 14,714 (5,217)
Dividends 13 (5,184) (988)
Profit/(loss) retained for the financial year 9,530 (6,205)
Transfer (to)/from capital reserve (3,010) 186
Transfer to/(from) profit and loss account 6,520 (6,019)
Earnings/(loss) per share 14 8.4p (6.9p)
Diluted earnings/(loss) per share 14 8.3p (6.9p)
Statement of total recognised gains and losses
2002 2001
£’000 £’000
Profit/(loss) for the financial year 14,714 (5,217)
Exchange differences on retranslation of foreign currency net assets (10,505) (26)
Prior year adjustment (1,970) –
2,239 (5,243) Consolidated balance sheet
at 31 December 2002
GoshawK Insurance Holdings plc
Annual report and accounts 2002 26
Assets
Restated
2002 2001
Notes £’000 £’000
Intangible assets 16 15,090 15,989
Investments
Other financial investments 17 226,666 104,408
Own shares held under trust 17 1,427 1,795
Deposits with ceding undertakings 1,562 1,092
229,655 107,295
Reinsurers’ share of technical provisions
Provisions for unearned premiums 24,959 14,075
Claims outstanding 212,820 112,965
237,779 127,040
Debtors
Debtors from direct insurance operations:
Due from intermediaries 229,967 74,119
Salvage and subrogation 8,685 –
Debtors arising out of reinsurance operations 34,751 37,164
Other debtors 18 4,798 9,494
278,201 120,777
Other assets
Tangible assets 20 403 153
Cash at bank and in hand 78,988 136,491
Other 6,321 4,425
85,712 141,069
Prepayments and accrued income
Deferred acquisition costs 40,689 17,024
Other prepayments and accrued income 21 3,467 3,966
44,156 20,990
Total assets 890,593 533,160 GoshawK Insurance Holdings plc
Annual report and accounts 2002 27
Liabilities
Restated
2002 2001
Notes £’000 £’000 
Capital and reserves
Called up share capital 22 8,793 8,790
Share premium account 158,390 158,358
Other reserves 2,564 (446)
Profit and loss account (4,061) (76)
Shareholders’ funds attributable to equity interest 22/23 165,686 166,626
Technical provisions
Provision for unearned premiums 190,592 67,542
Claims outstanding 19 360,628 238,295
551,220 305,837
Creditors
Amount due to credit institution 25 24,584 –
Creditors arising out of direct insurance operations 74,277 26,398
Creditors arising out of reinsurance operations 33,465 10,059
Other creditors 26 11,538 8,511
143,864 44,968
Accruals and deferred income 27 29,823 15,729
Total liabilities 890,593 533,160
Chris Fagan
Chief Executive
Andrew Castell
Finance Director
19 March 2003 Balance sheet
at 31 December 2002
GoshawK Insurance Holdings plc
Annual report and accounts 2002 28
2002 2001
Notes £’000 £’000
Fixed assets
Tangible assets 20 – 34
Investments 206,551 81,762
Own shares under trust 1,382 1,795
17 207,933 83,557
Current assets
Prepayments and accrued income 21 303 453
Other debtors 18 27,238 15,443
Cash at bank and in hand 411 105,527
27,952 121,423
Creditors: amounts falling due within one year
Amount due to credit institution 25 4,968 –
Other creditors 26 40,192 32,944
Accruals and deferred income 27 1,794 791
46,954 33,735
Net current assets (19,002) 87,688
Creditors: amounts falling due after more than one year
Amount due to credit institution 25 19,616 –
Net assets 169,315 171,279
Capital and reserves
Share capital 8,793 8,790
Share premium 158,390 158,358
Other reserves 175 876
Profit and loss account 1,957 3,255
Shareholders’ funds – equity 23 169,315 171,279
Chris Fagan
Chief Executive
Andrew Castell
Finance Director
19 March 2003 Consolidated statement of cash flows
for the year ended 31 December 2002
GoshawK Insurance Holdings plc
Annual report and accounts 2002 29
2002 2001
Notes £’000 £’000
Net cash flow from operating activities 28 39,235 34,149
Servicing of finance
Interest paid (300) (422)
Taxation (paid)/refunded (270) 301
Capital expenditure
Purchase of tangible fixed assets (483) (100)
38,182 33,928
Equity dividends paid (1,728) (2,683)
Financing
Issue of shares to institutional investors – 100,680
Institutional placing costs – (3,660)
Exercise of share options 35 –
Increase in bank loans 24,584 –
24,619 97,020
61,073 128,265
Cash flows were invested as follows:
Increase in cash holdings 29/30 (57,503) 115,206
Net portfolio investment
Purchase of equity investments 25,042 7,274
Purchase of gilt investments 297,865 162,945
Sale of equity investments (3,009) (6,436)
Sale of gilt investments (220,505) (157,468)
Change in deposits 19,183 6,744
118,576 13,059
Net investment of cash flows 29/30 61,073 128,265
The above sets out the cash flows of the Group, including cash flows generated within the syndicates that the Group manages. This
change in presentation reflects that the capacity of Syndicate 102 for the 2000 and post years of account is wholly owned by the Group.
Comparatives have been restated to reflect this change in presentation. Notes to the accounts
at 31 December 2002
GoshawK Insurance Holdings plc
Annual report and accounts 2002 30
1. Accounting policies
The consolidated financial statements of the Group have been prepared in compliance with Section 255A, Schedule 9A and other
requirements of the Companies Act 1985 and in accordance with applicable accounting standards. The recommendations of the
Statement of Recommended Practice on Accounting for Insurance Business issued by Association of British Insurers in December 1998
(the “ABI SORP”) have been adopted.
The Company’s accounts have been prepared under the historical cost convention, modified to include the revaluation of fixed asset
investments, in accordance with Section 226 Schedule 4 of the Companies Act 1985. 
a) Basis of accounting and consolidation
The Group accounts consolidate the accounts of GoshawK Insurance Holdings plc and all its subsidiary undertakings drawn up 
to 31 December. No profit and loss account is presented for GoshawK Insurance Holdings plc as permitted by Section 230 of the
Companies Act 1985.
GoshawK Dedicated Limited, a wholly owned subsidiary company, underwrote as a corporate member of Lloyd’s on syndicates
managed by the Group (managed syndicates) and participated in 1999 on non managed syndicates. The capacity for Syndicate 102
was transferred from GoshawK Dedicated Limited to GoshawK Dedicated (No.2) Limited for the 2001 and subsequent years of
account. The Group’s share of transactions of managed syndicates has been included on an annual accounting basis. Transactions
between Group companies, and between those companies and the managed syndicates, to the extent of the Group’s participations,
are eliminated on consolidation.
The accounting information in respect of non managed syndicates within GoshawK Dedicated Limited and the open Syndicate 
on MLIT (No.7), is provided by the respective managing agents through an information exchange facility operated by Lloyd’s. This
information is reported on a three year accounting basis in accordance with the Lloyd’s Syndicate Accounting Bye-laws.
b) Managed syndicate participations
i Premiums
Gross premiums written represent premiums on business incepting during the year together with adjustments to premiums written 
in previous accounting periods and estimates for “pipeline” premiums. Gross premiums written are stated before deduction of
commissions but net of taxes, duties levied on premiums and other deductions.
Outward reinsurance premiums are accounted for in the same accounting period as the related direct or inwards reinsurance business.
ii Unearned premiums
The provision for unearned premiums represents that part of gross premiums written and the reinsurers’ share that is estimated 
to be earned after the balance sheet date.
iii Deferred acquisition costs
Acquisition costs represent the expenses, both direct and indirect, of acquiring insurance policies written during the financial period.
Acquisition costs are deferred and amortised over the period in which the premium is earned. Deferred acquisition costs represent 
the proportion of acquisition costs incurred in respect of unearned premiums at the balance sheet date.
iv Claims
Claims incurred comprise claims and settlement expenses (both internal and external) paid in the year and the movement in provision
for outstanding claims and settlement expenses, including an allowance for the cost of claims incurred by the balance sheet date but
not reported until after the year end.
The provision for claims comprises amounts set aside for claims notified and claims incurred but not yet reported (IBNR). The provision
is set by the active underwriter in conjunction with the Group’s in house actuary. The actuary verifies the provision using statistical
techniques of estimation. This is subject to peer review by external consulting actuaries.
Such methods extrapolate the development of premiums, and paid and incurred claims for each year, based upon the observed
development of earlier years and expected loss ratios. The main assumption underlying these techniques is that past claims
experience can be used to project ultimate claims costs and that no changes to past trends, such as public attitudes to claiming 
or inflation occur. The approach adopted takes into account the nature and materiality of the business and the type of data available.
Additional qualitative input, such as allowance for one off occurrences or changes in legislation, policy conditions or portfolio mix, is
also used in arriving at the estimated ultimate cost of claims, in order that it represents the most likely outcome taking account of all
uncertainties involved.
Provisions are calculated allowing for reinsurance recoveries and a separate asset is recorded for reinsurers’ share, having regard 
to collectability based on the credit ratings of reinsurers. GoshawK Insurance Holdings plc
Annual report and accounts 2002 31
1. Accounting policies (continued)
iv Claims (continued)
While the directors consider that the provisions for claims outstanding are fairly stated on the basis of the information available to them
at the date of these accounts, the ultimate liability will vary as a result of subsequent information and events and may result in significant
adjustments to the losses foreseen. Adjustments to the amounts of the provisions are reflected in the accounts for the period in which
the adjustments are made.
The amount of salvage and subrogation recoveries is separately identified, and where material, reported as an asset.
v Unexpired risk provisions
A provision for unexpired risks is made when it is anticipated that unearned premiums will be insufficient to meet future claims and
claims settlement expenses of business in force at the period end. The provision for unexpired risks is included within technical
provisions in the balance sheet.
c) Non managed syndicate participations
Non managed syndicate participations are accounted for on a three year funded basis and therefore the accounting policies referred 
to in b) i-v above differ from non managed syndicate participations. The material accounting policies are as follows:
i Premiums
Gross premiums written represent premiums receivable on business incepting during the underwriting year of account together with
adjustments to premiums written in previous underwriting years of account and including estimates for “pipeline” premiums. Gross
written premiums are stated before deduction of commissions and exclusive of taxes, duties levied on premiums and other deductions.
Outward reinsurance premiums are accounted for in the same accounting period as the related direct insurance contracts or
reinsurance contracts except in relation to excess of loss contracts, where the initial premium is charged when due.
There is no deferral of either gross written or outward reinsurance premiums.
ii Acquisition costs
Acquisition costs represent the expenses, both direct and indirect, of acquiring insurance policies written during the financial year.
There is no deferral of these costs.
iii Claims
Claims incurred comprise claims and expenses paid in the year and the movement in provision for outstanding claims and settlement
expenses, including an allowance for the cost of claims incurred by the balance sheet date but not reported until after the year end.
Included in the provision is an estimate of the cost of handling the outstanding claims. Provisions for claims outstanding are based 
on information available to the directors and the eventual outcome may vary from the original assessment. The amount of salvage and
subrogation recoveries is separately identified, and where material, reported as an asset.
iv Technical provisions
The underwriting accounts for all classes of business are prepared on a three year basis, in accordance with Lloyd’s normal practice.
The excess of premiums written and syndicate investment income over the claims and syndicate expenses paid in respect of business
incepting in an underwriting year is carried forward for two years in a fund and no profit is recognised until the end of the third year
following the start of each underwriting year. The fund is included as part of outstanding claims. At the end of the third year and
thereafter, provision is made for the estimated cost of claims notified but not settled at the balance sheet date together with the
estimated cost of claims incurred but not reported at that date and claims handling costs.
Where appropriate a provision for losses is made in respect of the open underwriting years by each spread vehicle on which the Group
participates. While the directors make every effort to ensure that adequate provision is made for losses on open years of account and
years in run-off, their view of the ultimate loss may vary in later periods as a result of subsequent information and events. This in turn
may necessitate adjustment of the original provisions. Such adjustments are reflected and disclosed in the financial statements for the
period in which the related adjustments are made.
d) Exchange rates
i Company
Assets, liabilities, revenues and costs denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of
transactions. At the balance sheet date, monetary assets and liabilities are translated at the year end rates of exchange. Exchange
profits or losses arising from transactions are taken to the profit and loss account. 
ii Group
The financial statements of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date.
The exchange differences arising on retranslation of opening net assets is taken directly to reserves. All other translation differences are
taken to the profit and loss account with the exception of differences on foreign currency borrowings to the extent that they are used
to finance or provide a hedge against group equity investments in foreign enterprises, which are taken directly to reserves together with
the exchange difference on the net investment in these enterprises. Tax charges and credits attributable to exchange differences on
those borrowings are also dealt with in reserves. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 32
1. Accounting policies (continued)
e) Investments
Listed investments are shown at market value. The Company’s unlisted investments are shown at directors’ valuation. Investments in
own shares held under trust are shown at cost less amortisation written off to the profit and loss account. The cost is amortised evenly
over 3 years, to match the early vesting period under the LTIP rules.
All of the investment returns arising in the year are reported in the non-technical account. In accordance with the ABI ‘SORP’ a transfer
is made from the non-technical account to the technical account representing the longer term return on investments supporting the
technical provisions. The longer term investment return is an estimate of the expected return over time for each category of investments
having regard to past performance, current trends and future expectations.
f) Intangible assets 
Syndicate participations at Lloyd’s acquired by offers to syndicate names or at auction are carried in these accounts at cost less
amortisation. In accordance with Technical Release 1/99, Accounting by Lloyd’s Corporate Capital Vehicles, issued by the ICAEW, the
acquired capacity will be amortised on a straight line basis over the estimated useful life. This life is estimated to be 20 years. In
accordance with the Technical Release, acquired capacity is reviewed for impairment at the end of the first full financial year following
acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
g) Goodwill
Goodwill arising on acquisitions prior to 31 December 1997 was set off directly against reserves. Goodwill previously eliminated against
reserves has not been reinstated on implementation of FRS10. If the acquisitions are disposed of in the future, this goodwill will be
recognised through the profit and loss account at that point.
Positive goodwill arising on acquisitions since 1 January 1998 is capitalised, classified as an asset on the balance sheet and amortised
on a straight line basis over its useful economic life up to a presumed maximum of 20 years. It is reviewed for impairment at the end of
the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying
value may not be recoverable.
h) Investment income
Syndicate investments and cash are held on a pooled basis, the return from which is allocated to underwriting years of account
proportionately to the funds constituted by the year of account.
Investment income and all investment gains and losses (realised and unrealised) relating to investments and cash held by the Syndicate
and GoshawK Re are included in the non-technical account and transferred to the technical account.
Investment income from Group owned investments other than those held by GoshawK Re and those charged to Lloyd’s in respect 
of underwriting activities (including realised gains and losses) is included in the non-technical account.
Realised gains and losses are calculated as the difference between the net sales proceeds and their purchase price in the financial
year or their valuation at the commencement of the year. Unrealised gains and losses on Group owned investments are calculated 
as the difference between the valuation of investments at the end of the financial year and their purchase price in the financial year or
valuation at the commencement of the year. Unrealised gains and losses are recognised in the profit and loss account and are then
transferred to a capital reserve. 
i) Other income
Other income comprises consortium management, consultancy and asset management fees. These are credited to the profit and loss
account as they become due.
j) Operating expenses
Operating expenses include the Group’s share of syndicate operating expenses. The Group’s underwriting expenses, which include
items such as Lloyd’s subscriptions and Central Fund contributions are charged to the technical account.
k) Deferred taxation
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date
where transaction or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive
more, tax, with the following exceptions:
• provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries only to the extent
that, at the balance sheet date, dividends have been accrued as receivable;
• deferred tax assets are recognised only to the extent that the directors consider that is more likely than not that there will be suitable
taxable profits from which the future reversal of the underlying timing differences can be deducted. GoshawK Insurance Holdings plc
Annual report and accounts 2002 33
1. Accounting policies (continued)
k) Deferred taxation (continued)
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing
differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
This represents a change in accounting policy, in accordance with FRS 19. This effect of this change is disclosed in the Statement 
of Total Recognised Gains and Losses
l) Depreciation
Depreciation is provided on all tangible assets at rates calculated to write off the cost less estimated residual value, of each asset evenly
over its expected useful life as follows:
Furniture and computer equipment, and leasehold improvements 3 years
Assignment of lease 5 years
The carrying values of tangible assets are reviewed for impairment in periods if events or changes in circumstances indicate the
carrying value may not be recoverable.
m) Managing agency/syndicate expenses
Where expenses are incurred jointly by the managing agency and its managed syndicates they are allocated as follows:
Salaries and related costs According to time of each individual spent on agency matters
Accommodation costs According to number of personnel
Other costs According to the nature of expenses and the person incurring the cost
n) Pension costs
The Group operates a defined contribution pension scheme through its wholly owned subsidiary, GoshawK Syndicate Management
Limited. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
o) Operating leases
Rentals payable under operating leases are charged on a straight line basis over the term of the lease.
p) Derivative instruments
The Group used forward foreign exchange contracts in the year. The effect of the realised currency movements on these contracts has
been treated as an exchange difference in the profit and loss account.
2. Segmental analysis
2002 2001
£’000 £’000
Gross written premiums:
UK 330,472 230,791
Other – Bermuda 126,066 –
Gross written premiums 456,538 230,791
Profit before taxation:
UK (12,671) (7,394)
Other – Bermuda 22,759 –
Profit before taxation 10,088 (7,394)
Net Assets:
UK 31,126 166,626
Other – Bermuda 134,560 –
Net assets 165,686 166,626
All turnover from the participations as a corporate member arises from underwriting business in the United Kingdom in the Lloyd’s
Insurance Market. This has been treated as one geographical element. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 34
3. Discontinued activities
The discontinued relate to the Group’s participation in non-managed syndicates. There were three participations on the Group’s non-
managed syndicate capacity portfolio which remained open at 31 December 2001. Information is not currently available with regard to
the status of the participations at 31 December 2002. Information included within these accounts is based upon the known status of
the participation at 30 September 2002. At a Board Meeting held on 26 August 1999, a strategy of participating on managed
syndicates only was agreed for the 2000 year of account and thereafter.
4. Profit and loss: technical account (continuing operations)
An analysis of the consolidated profit and loss: technical account – general business for continuing operations is as follows:
2002 2001
Continuing Continuing
£’000 £’000
Earned premiums, net of reinsurance
Gross premiums written 456,464 231,647
Outward reinsurance premiums (151,037) (86,845)
Net premiums written 305,427 144,802
Change in the gross provision for unearned premiums (127,745) (20,114)
Change in the provision for unearned premiums – reinsurers’ share 11,992 (1,031)
Change in the net provision for unearned premiums (115,753) (21,145)
Net earned premiums 189,674 123,657
Allocated investment income transferred 
from the non technical account 15,332 6,481
205,006 130,138
Claims incurred, net of reinsurance
Claims paid:
Gross amount (133,978) (123,850)
Reinsurers’ share 55,719 56,227
(78,259) (67,623)
Change in provision for claims:
Gross amount (153,063) (73,683)
Reinsurers’ share 114,358 50,877
(38,705) (22,806)
Net claims incurred (116,964) (90,429)
88,042 39,709
Net operating expenses (73,896) (41,933)
Investment expenses and charges (96) (79)
Balance on technical account – general business 14,050 (2,303) GoshawK Insurance Holdings plc
Annual report and accounts 2002 35
5. Profit and loss: technical account (discontinued operations)
An analysis of the consolidated profit and loss: technical account – general business for discontinued operations is as follows:
2002 2001
Continuing Continuing
£’000 £’000
Earned premiums, net of reinsurance
Gross premiums written 74 (856)
Outward reinsurance premiums (8) (228)
Net premiums written 66 (1,084)
Change in the gross provision for unearned premiums – –
Change in the provision for unearned premiums – reinsurers’ share – –
Change in the net provision for unearned premiums – –
Net earned premiums 66 (1,084)
Allocated investment income transferred
from the non technical account 38 773
104 (311)
Claims incurred, net of reinsurance
Claims paid:
Gross amount (199) (8,064)
Reinsurers’ share – 3,018
(199) (5,046)
Change in provision for claims:
Gross amount 113 2,247
Reinsurers’ share – 1,088
113 3,335
Net claims incurred (86) (1,711)
18 (2,022)
Net operating expenses (18) 488
Investment expenses and charges – (12)
Balance on technical account – general business – (1,546)
RITC insurance premiums receivable of £nil (2001 – £nil) and payable of £nil (2001 – £228,236) are included respectively in gross
premiums written and outward reinsurance premiums. The operating profit on discontinued operations was £nil. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 36
6. Investment return
2002 2001
£’000 £’000
Investment income 9,811 8,174
Realised gains 6,340 12
Unrealised gains/(losses) 2,569 (280)
Investment expenses (235) (143)
Total investment return 18,485 7,763
Analysed as:
Investment return from:
Non managed syndicates 38 773
Managed syndicates 5,169 3,969
Corporate funds at Lloyd’s 2,484 2,512
Bermudian operation 7,679 –
Transferred to the technical account 15,370 7,254
Non-underwriting investment return 637 711
Net investment return 16,007 7,965
Short term fluctuations in investment return 2,478 (202)
Total investment return 18,485 7,763
The transfer to the technical account represents the estimated long term rate of return, as indicated below, applied to the Group’s
share of assets of the syndicates and assets held as Funds at Lloyd’s and underwriting assets held in Bermuda. The long term rates 
of return are based on an estimate of the historical asset performance, current and prospective bond yields, and the risk premium for
holding equity investments. Short term fluctuations in investments in the period have arisen primarily from the decision to hedge 
US dollar funds back into sterling, producing exceptional returns from the forward positions.
Long term rate of return 2002 2001
UK and overseas equities 7.5% 7.5%
UK and overseas bonds 5.8% 5.8%
The rates were applied to the average bond and equity components of the Group’s underwriting investment assets and of the managed
syndicates’ reserves, as follows:
£’000 £’000
Syndicate assets 67,934 53,508
Funds at Lloyd’s 40,654 41,878
Bermudian assets 100,086 –
The actual return on investments attributable to general business for the four year period 1 January 1999 to 31 December 2002 
is compared below with the aggregate long term return over the same period:
Long term investment return 37,776
Actual investment return 42,814
Short-term fluctuations over the period 5,038 GoshawK Insurance Holdings plc
Annual report and accounts 2002 37
7. Operating expenses
2002 2001
£’000 £’000
Acquisition costs
– commission in respect of direct business 48,616 33,565
– commission in respect of reinsurance business 33,012 4,794
– other 4,101 3,024
Change in deferred acquisition costs (24,734) (5,819)
Administrative expenses 10,913 5,998
Exchange adjustment 2,006 (117)
73,914 41,445
8. Other income
2002 2001
£’000 £’000
Consortium management 442 458
Commissions 588 475
Asset management 35 –
Other 129 366
1,194 1,299
9. Other charges (including amortisation)
2002 2001
£’000 £’000
Salaries and related expenses 4,274 2,547
Rent and rates – building held on operating lease 226 204
Auditors’ remuneration
– Audit work 146 111
– Other services 62 136
Legal and professional charges 491 317
Depreciation 233 163
Amortisation of syndicate capacity 899 874
Interest payable on bank loan 300 422
Other costs 1,640 579
8,271 5,353 Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 38
10. Staff costs
2002 2001
£’000 £’000
Wages and salaries 2,924 1,631
Social security costs 388 171
Pension costs 223 194
Other related salary expenses 739 551
Total staff costs (excluding syndicates) 4,274 2,547
The average monthly number of employees of the Group during the year, including executive directors and staff wholly dedicated to
managed syndicates are as follows:
2002 2001
Underwriting 20 19
Management 15 14
Administration 45 32
Total group employees 80 65
Details of each director’s remuneration and benefits are set out in the Directors’ Remuneration Report.
11.Taxation
a) Taxation charge
The tax charge is made up as follows: Restated
2002 2001
£’000 £’000
Corporation tax at 30% (2001 – 30%) – –
Movement in deferred taxation (3,426) (2,177)
Over provision on prior year’s tax charge (1,200) –
(4,626) (2,177)
Taxable losses generated from U.K. operations in 2002 and 2001 will be offset against future profits of the Group. Profits generated
from Bermudian operations are not subject to UK corporation tax. The overprovision of tax follows the resolution of discussions with
the Inland Revenue regarding a possible breach of investment trust status.
b) Factors affecting the tax credit during the year
The tax credit based on the profit/(loss) for the year comprises:
2002 2001
£’000 £’000
Group profit/(loss) on ordinary activities before tax 10,088 (7,394)
Group profit/(loss) on ordinary activities before tax at 30% 3,026 (2,218)
Effects of:
Profits arising overseas not subject to UK tax (6,826) –
Deferred tax credit in respect of current year losses 3,774 2,053
Expenses not deductible for tax purposes 26 165
– – GoshawK Insurance Holdings plc
Annual report and accounts 2002 39
12. Profit/loss of the parent company
The profit dealt with in the accounts of the Parent Company after taxation was £3,187,401 (2001 loss – £498,444). After accounting
for dividends payable of £5,184,107 (2001 – £988,461) this results in a retained loss for the year of £1,996,706 (2001 loss – £1,486,905).
13. Dividends
2002 2001
£’000 £’000
Interim dividend of 1.0p per share (2001 – 1.4p per share) 1,728 988
Proposed final dividend of 2.0 p per share (2001 – nil per share) 3,456 –
5,184 988
14. Earnings per ordinary share
The calculation of basic earnings per share is based on the profit from ordinary activities after taxation available for ordinary
shareholders of £14,714,137 (2001 loss – £5,216,790) and the weighted average number of shares in issue of 175,842,053 (2001 –
75,108,190). The calculation of diluted earnings per share is based on shares of 178,135,207 (2001 – 75,108,190). For 2001, the loss
attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted
earnings per ordinary share were identical to those used for basic earnings per ordinary share. This is because the exercise of share
options would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of FRS 14.
2002 2001
No. of shares No. of shares
‘000 ‘000
Basic weighted average 175,842 75,108
Dilutive potential ordinary shares – Employee share options 2,293 –
178,135 75,108
15. Investments in subsidiary undertakings
The Group structure is disclosed below. All companies operate in the United Kingdom, are incorporated in Great Britain and are
registered in England and Wales, with the exception of GoshawK Security Insurance Limited, which is incorporated and operates in 
the Cayman Islands, and GoshawK Reinsurance Limited, which is incorporated and operates in Bermuda.
Proportion of
ordinary shares held
Company Principal activity by the Company
GoshawK Syndicate Management Limited* Lloyd’s Underwriting Agent 100%
GoshawK Capital Limited Corporate Member Holding Company 100%
GK Consortium Management Limited Consortium Manager 100%
G K Dwyer Limited Consortium Manager 100%
Matheson Lloyd’s Investment Trust plc Investment Company 100%
GoshawK Securities Limited Management Service Company 100%
GoshawK Underwriting Limited Lloyd’s Service Company 100%
GoshawK Security Insurance Limited Insurance Company 100%
GHK Asset Management Limited Asset Management Company 100%
GoshawK Reinsurance Limited Bermudian Reinsurer 100%
Proofsecond Limited Investment Company 100%
*In addition all of the redeemable preference shares are held by the Company. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 40
15. Investments in subsidiary undertakings (continued)
GoshawK Reinsurance Limited owns 90% of the ordinary shares of GHK First Equity Limited, a hedge fund incorporated in the
Cayman Islands, and registered on the Irish Stock Exchange. This investment has been consolidated within the Group accounts.
GoshawK Capital Limited owns all the ordinary shares of GoshawK Dedicated Limited and GoshawK Dedicated (No 2) Limited corporate
members. There are two participations on GoshawK Dedicated Limited’s non-managed syndicate capacity portfolio which remained
open at 31 December 2001. Information is not currently available with regard to the status of the participations at 31 December 2002.
Matheson Lloyd’s Investment Trust plc, owns all the ordinary shares of MLIT Holdings Limited, a corporate member holding company.
MLIT Holdings Limited owns all the ordinary shares of the following companies: 
Company Principal activity
MLIT (No. 1) Limited Corporate Member of Lloyd’s
MLIT (No. 2) Limited Corporate Member of Lloyd’s
MLIT (No. 3) Limited Corporate Member of Lloyd’s
MLIT (No. 4) Limited Corporate Member of Lloyd’s
MLIT (No. 5) Limited Corporate Member of Lloyd’s
MLIT (No. 6) Limited Corporate Member of Lloyd’s
MLIT (No. 7) Limited Corporate Member of Lloyd’s
MLIT (No. 1) Limited – MLIT (No. 7) Limited
All the above companies resigned as corporate members of Lloyd’s with effect from 31 December 1997. Their participations have been
accounted for on a three year accounting basis. There is one participation on MLIT (No.7) Ltd which remained open at 31 December 2001.
Information is not currently available with regard to the status of the participation at 31 December 2002. Information included within
these accounts is based upon the known status of the participation at 30 September 2002. 
G K Dwyer Limited
G K Dwyer Limited ceased to trade as an active consortium manager with effect from 31 December 1996. G K Dwyer Limited is
continuing to run-off the 1994 to 1996 years of account, the years for which it managed the R C Dwyer Consortium.
16. Intangible assets Syndicate
participations Total
£’000 £’000
Cost:
At 1 January and 31 December 2002 17,986 17,986
Accumulated amortisation:
At 1 January 2002 1,997 1,997
Charge for the year 899 899
At 31 December 2002 2,896 2,896
Net book value:
At 31 December 2002 15,090 15,090
At 31 December 2001 15,989 15,989
Goodwill of £527,480 arising on an acquisition prior to 31 December 1997 was eliminated against reserves. This goodwill has not been
reinstated on implementation of FRS10. If the acquisition is disposed of in the future, this amount will be recognised through the profit
and loss account at that point. GoshawK Insurance Holdings plc
Annual report and accounts 2002 41
17. Other financial investments
(a) Group
2002 2001
£’000 £’000
Shares and other variable yield securities 26,218 5,121
Debt securities and other fixed interest securities 169,893 87,915
Loans guaranteed by mortgages – 106
Deposits with credit institutions 30,555 11,257
Other – 9
Own shares held under trust (nominal value 5 p per share) 1,427 1,795
Value of investments at 31 December 228,093 106,203
Included within shares and other variable yield securities are amounts of £nil (2001– £187,500) relating to unlisted shares. All other
securities are listed.
Own shares
The GoshawK EBT was established in 1999 with the purpose of holding shares in the Company for subsequent transfer to employees
under the LTIP . As at 31 December 2002 the EBT held 3,063,507 shares (2001 – 2,890,833) in the Company with a market value of
£3,982,559 (2001 – £3,006,466). Costs of administration are included in the profit and loss account as they accrue. The EBT has
waived dividend on these shares.
Shares and Debt securities Deposits
other variable and other fixed with credit
yield securities interest securities institutions Total
£’000 £’000 £’000 £’000
Cost of investment at 1 January 2002 7,607 84,267 11,372 103,246
Additions at cost 25,042 297,865 54,824 377,731
Sales at cost (3,572) (213,602) (35,641) (252,815)
Cost of investments at 31 December 2002 29,077 168,530 30,555 228,162
Unrealised appreciation (610) 1,363 – 753
Accumulated amortisation of own shares held under trust (822) – – (822)
Value of investments 
at 31 December 2002 27,645 169,893 30,555 228,093
Value of investments
at 31 December 2001 6,916 87,915 11,372 106,203
(b) Company
Shares and Debt securities Deposits Investment in
other variable and other fixed with credit subsidiary
yield securities interest securities institutions undertakings Total
£’000 £’000 £’000 £’000 £’000
Cost of investments at 1 January 2002 7,561 26,485 10,477 40,001 84,524
Additions at cost 9,561 18,651 12,085 121,721 162,018
Sales at cost (3,529) (26,025) (6,595) – (36,149)
Cost of investments at 31 December 2002 13,593 19,111 15,967 161,722 210,393
Unrealised appreciation (1,548) (90) – – (1,638)
Accumulated amortisation of own shares
held under trust (822) – – – (822)
Value of investments at
31 December 2002 11,223 19,021 15,967 161,722 207,933
Value of investments at
31 December 2001 6,869 26,210 10,477 40,001 83,557
Included within shares and other variable yield securities are amounts of £nil (2001– £187,500) relating to unlisted shares. All other
securities are listed. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 42
17. Other financial investments (continued
(c) Funds at Lloyd’s
A fixed and floating charge over the investment portfolio and other cash assets together with Letters of Credit secure the obligation to
Lloyd’s in respect of the underwriting activities of the corporate member subsidiaries. The total guarantee given by the Company under
a deed of covenant amounts to £43,182,985. The guarantee supports the corporate members participations for the 1997 – 2003
years of account. Lloyd’s has the right to retain the income on the charged investments although it is not expected to exercise this
right. As liability under the deed of covenant is limited to a fixed and monetary amount, the enforcement by Lloyd’s of the deed of
covenant in the event of a default by a corporate member may, where the total value of investments has fallen below the total of all
amounts covenanted, result in the appropriation of a share of the Group’s funds at Lloyd’s that is greater than the proportion which that
corporate member’s overall premium bears to the overall premium of the Group. In the event that a corporate member subsidiary
makes a loss which is not satisfied, the Company is obliged to procure that its other members, if required by Lloyd’s, stop or reduce
underwriting and that any profit in their respective Premiums Trust Funds is paid to the New Central Fund to meet the losses of the
relevant corporate member.
18. Other debtors
Group Company
Restated
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Taxation recoverable 22 74 – 66
Deferred taxation (see note 24) 3,499 73 465 –
Amounts due from managed syndicates – 1,534 – –
Amounts due from share placing – 298 – –
Proposed inter-company dividend – – 1,400 405
Amounts due from Lloyd’s – 3,737 – –
Amounts due from Group companies – – 24,381 14,110
Other debtors 1,277 3,778 992 862
4,798 9,494 27,238 15,443
19. Provisions for open year underwriting on discontinued operations
2002 2001
£’000 £’000
Open year underwriting provision at 1 January – 1,271
Provided in year – 1,285
Utilised in year – (2,556)
Open year underwriting provision at 31 December – – GoshawK Insurance Holdings plc
Annual report and accounts 2002 43
20. Tangible assets
(a) Group
Short leasehold, Leasehold Office
land & buildings improvements furniture Total
£’000 £’000 £’000 £’000
Cost:
1 January 2002 162 132 835 1,129
Additions –46 437 483
At 31 December 2002 162 178 1,272 1,612
Accumulated depreciation:
At 1 January 2002 128 126 722 976
Charge for the year 34 18 181 233
At 31 December 2002 162 144 903 1,209
Net book value:
At 31 December 2002 – 34 369 403
At 31 December 2001 34 6 113 153
(b) Company
Short leasehold
land & buildings
£’000
Cost:
1 January 2002 162
At 31 December 2002 162
Accumulated depreciation:
At 1 January 2002 128
Charge for the year 34
At 31 December 2002 162
Net book value:
At 31 December 2002 –
At 31 December 2001 34 Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 44
21. Prepayments and accrued income
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Prepayments 143 74 59 22
Other accrued income 791 1,855 244 431
Syndicate prepayments and accrued income 2,533 2,037 – –
3,467 3,966 303 453
22. Share capital
2002 2001
Number Number
‘000 £’000 ’000 £’000
Authorised – ordinary shares of 5p each 250,000 12,500 250,000 12,500
Allotted and fully paid – ordinary shares of 5p
At 1 January 175,797 8,790 72,237 3,612
Exercise of share options 52 3 150 8
Share placement –– 103,410 5,170
At 31 December 175,849 8,793 175,797 8,790
23. Shareholders’ funds
(a) Group
Profit
Share Share Other and loss
capital premium reserves account Total
£’000 £’000 £’000 £’000 £’000
At 1 January 2002 8,790 158,358 (446) 1,894 168,596
Prior year adjustment – – – (1,970) (1,970)
At 1 January 2002 (restated) 8,790 158,358 (446) (76) 166,626
Profit for the year – – – 14,714 14,714
Dividends paid/payable – – – (5,184) (5,184)
Transfer to other reserves – – 3,010 (3,010) –
Retranslation of foreign currency net assets – – – (10,505) (10,505)
Exercise of share options 3 32 – – 35
At 31 December 2002 8,793 158,390 2,564 (4,061) 165,686 GoshawK Insurance Holdings plc
Annual report and accounts 2002 45
23. Shareholders’ funds (continued)
(b) Company Profit
Share Share Other and loss
capital premium reserves account Total
£’000 £’000 £’000 £’000 £’000
At 1 January 2002 8,790 158,358 876 3,255 171,279
Profit for the year – – – 3,185 3,185
Dividends paid/payable – – – (5,184) (5,184)
Revaluation of fixed asset investments – – (701) 701 –
Exercise of share options 3 32 – – 35
At 31 December 8,793 158,390 175 1,957 169,315
24. Deferred taxation
Group Company
Restated
2002 2001 2002 2001
£’000 £’000 £’000 £’000
At 1 January (73) 2,104 – 3
Deferred taxation on unrealised investment (losses)/gains (352) (95) 465 –
Deferred taxation on trading losses carried forward (2,952) (1,958) – –
Release of deferred taxation – – – (3)
Deferred taxation in respect of transfer of capacity (122) (124) – –
At 31 December (3,499) (73) 465 –
The recognised deferred tax asset is made up of the following:
2002 2001
£’000 £’000
Trading losses carried forward (4,910) (1,958)
Loss on transfer of capacity 1,858 1,980
Unrealised loss on investments (447) (95)
(3,499) (73)
The deferred tax asset recognised in respect of losses in 2002 will be recoverable in 2003 (or carried back to 2002) against taxable
profits arising from the following potential sources:
– Profits arising from UK subsidiaries
– Profit arising in GoshawK Dedicated in respect of the 1999 year of account
– Dividend income from GoshawK Re
No deferred tax has been provided in respect of profits in GoshawK Re, as no dividend has been paid or proposed in the year. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 46
25. Due to credit institutions
Group Company
Restated
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Amounts falling due:
In less than one year 4,968 – 4,968 –
In more than one year but not more than two years 9,938 – 9,938 –
In more than two years but not more than five years 9,938 – 9,938 –
24,844 – 24,844 –
Less: Issue costs (260) – (260) –
24,584 – 24,584 –
Less: Included within amounts due with one year (4,968) – (4,968) –
Amounts falling due after more than one year 19,616 – 19,616 –
On 24 December 2002 Barclays Bank plc made available to the Company a Term Loan Facility for US Dollars 40 million. The facility 
is secured by a guarantee and a debenture from GoshawK Insurance Holdings plc and all subsidiary companies with the exception 
of GoshawK Reinsurance Ltd, GK Dwyer Ltd and GoshawK Security Insurance Ltd in respect of all the obligations of the Company 
to the Bank in respect of the Term Loan Facility.
During 1999, 2000 and 2001 Fleet Boston Financial provided Letters of Credit in favour of Lloyd’s in respect of subsidiary companies
of GoshawK Insurance Holdings plc underwriting as corporate members. The Letters of Credit for 1999 and 2000 amounted to 
£15 million and for 2001 £20 million. The Letters of Credit were secured by a charge over a Key Man Life Assurance policy and 
by a guarantee from GoshawK Syndicate Management Ltd, GoshawK Capital Ltd, GoshawK Dedicated Ltd, GoshawK Dedicated
(No2) Ltd, MLIT Holdings Ltd and Matheson Lloyd’s Investment Trust plc in respect of all the obligations of the Company to the 
Bank in respect of the facility.
On 1 January 2002 replacement Letters of Credit for £20 million were provided by Barclays Bank plc, in favour of Lloyd’s in respect 
of subsidiary companies of GoshawK Insurance Holdings plc underwriting as corporate members. The Letters of Credit are secured 
by a charge over a £5 million cash deposit, by a guarantee and a debenture from GoshawK Insurance Holdings plc, and all subsidiary
companies with the exception of GoshawK Reinsurance Ltd, GK Dwyer Ltd and GoshawK Security Insurance Ltd in respect of all the
obligations of the Company to the Bank in respect of the Letters of Credit.
26. Other creditors
Group Company
Restated
2002 2001 2002 2001
Amounts falling due within one year: £’000 £’000 £’000 £’000
Trade creditors 2,668 1,576 8 96
Proposed dividend 3,456 – 3,456 –
Corporation tax creditor – 1,591 – –
Amounts due to Group undertakings – – 36,555 32,848
Amounts due to managed syndicates – 2,381 173 –
Other creditors 5,414 2,963 – –
11,538 8,511 40,192 32,944
27. Accruals
Group Company
Restated
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Accruals 29,823 15,729 1,794 791 GoshawK Insurance Holdings plc
Annual report and accounts 2002 47
28. Reconciliation of operating profit / (loss) to net cash inflow from operating activities
2002 2001
£’000 £’000
Profit/(loss) on ordinary activities before taxation 10,088 (7,394)
Interest payable 300 422
Depreciation of tangible fixed assets 233 163
Amortisation of intangible assets 899 874
Amortisation of own shares 413 320
(Increase) in deposits with ceding undertakings (470) –
(Increase) in debtors and accrued income (155,425) (14,810)
Increase in creditors and accruals 86,452 23,774
Increase in insurance technical provisions on open years 110,977 30,557 
Loss / (profit) from sales of investments (6,340) (12)
(Profit) / loss from revaluation of investments 2,613 281 
Exchange movements (10,505) (26)
Net cash inflow from operating activities 39,235 34,149
29. Movement in cash, portfolio investments and financing
Changes
At to market At
1 January value & 31 December
2002 Cashflow currency mvt. Other 2002
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 136,491 (57,503) – – 78,988
Ordinary shares 6,916 22,033 (891) (413) 27,645
Fixed income securities 87,915 77,360 4,618 – 169,893
Deposits with credit institution 11,372 19,183 – – 30,555
Total cash and portfolio investments 242,694 61,073 3,727 (413) 307,081
Borrowings – (24,584) – – (24,584)
Total cash and portfolio investments, net debt 242,694 36,489 3,727 (413) 282,497
Other represents the amortisation of the long term incentive plan.  Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 48
30. Movement in opening and closing portfolio investments net of financing
2002 2001
£’000 £’000
Net cash inflow for the period (57,503) 115,206
Cash flow
Portfolio investments net of financing 93,992 13,059
Movement arising from cash flows 36,489 128,265
Changes in market values and exchange rate effects 3,727 385
Other (413) (263)
Total movement in portfolio investments 
net of financing 39,803 128,387
Portfolio investments net of financing at 1 January 242,694 114,307
Portfolio investments net of financing at 31 December 282,497 242,694
31. Contingent liabilities
Certain names commenced legal proceedings against Citibank, as trustee of the Lloyd’s American Trust Funds (LATFs), regarding the
operation of the LATFs. Lloyd’s is not party to the proceedings. This action was brought prior to the completion of Reconstruction and
Renewal. The names in these proceedings allege that Citibank breached its duties as the trustee of the LATFs by, inter alia:
(1) engaging in a pattern of transferring money from the trust funds of solvent names to trust funds of insolvent names in order to meet
the latter’s obligations;
(2) engaging in unauthorised commingling of the assets from the different trust funds; and
(3) failing to maintain appropriate and necessary records with respect to each trust fund.
The Court certified the proceedings as a class action, the class being all those names who have not settled with Citibank through 
the 1996 Reconstruction & Renewal settlement offer or otherwise. 
At the beginning of 1997, on the application of Citibank, the US District Court dismissed a number of the names’ claims. The Court
held, however that the plaintiffs may continue to bring their claim for damages for breach of fiduciary duty by Citibank in the US courts.
These initial findings were on preliminary motion, and are not findings on the merits of the claims.
A settlement agreed between Citibank and the Class Action Attornies was approved by The District Court in New York in November
2002. That approval has been appealed.
Citibank strongly denies the allegations made by the names and will vigorously defend the proceedings if pursued. Under the terms 
of the Lloyd’s American Trust Deed (LATD), Citibank has a right to reimbursement from the LATFs of expenses (including legal fees)
properly incurred by Citibank in its capacity as trustee and in certain circumstances a preferred lien for up to 1% of the LATFs’ principal
and income in order to cover reimbursable expenses and liabilities. At this time Citibank is not seeking to recover its fees and expenses
from the LATFs. GoshawK Insurance Holdings plc
Annual report and accounts 2002 49
32. Share option schemes
The following options have been granted:
Unapproved scheme
At Granted Exercised Elapsed At 
1 January during the during the during the 31 December Dates of
Granted on Exercise price 2002 year year year 2002 exercise from
17 April 2000 64.0p 15,000––– 15,000 28 April 2003
8 June 2000 55.0p 2,190,000 – (37,500) – 2,152,500 8 June 2003
17 November 2000 90.5p 65,000––– 65,000 17 November 2003
9 April 2001 96.0p 20,000––– 20,000 9 April 2004
27 November 2001 98.0p 425,000––– 425,000 27 November 2004
10 March 2002 74.5p – 20,000 – – 20,000 10 March 2005
18 March 2002 74.5p – 177,302 – – 177,302 18 March 2005
22 April 2002 82.0p – 55,366 – – 55,366 22 April 2005
30 October 2002 84.0p – 1,667,500 – – 1,667,500 30 October 2005
2 December 2002 102.0p – 50,000 – – 50,000 2 December 2005
2,715,000 1,970,168 (37,500) – 4,647,668
All share options can be exercised between the third and seventh anniversaries of their date of grant. 
During the year a former employee, in accordance with his termination agreement, was entitled to exercise his options prior to the
exercise date.
Approved scheme
At Granted Exercised Elapsed At 
1 January during the during the during the 31 December Dates
Granted on Exercise price 2002 year year year 2002 of exercise from
17 November 2000 90.5p 450,000 – (15,000) – 435,000 17 November 2003
9 April 2001 96.0p 55,000––– 55,000 9 April 2004
15 June 2001 111.0p 25,000––– 25,000 15 June 2004
27 November 2001 98.0p 195,000––– 195,000 27 November 2004
15 January 2002 107.0p – 30,000 – – 30,000 15 January 2005
10 March 2002 74.5p – 30,000 – – 30,000 10 March 2005
18 March 2002 74.5p – 30,000 – – 30,000 18 March 2005
22 April 2002 82.0p – 30,000 – – 30,000 22 April 2005
30 October 2002 84.0p – 262,500 – – 262,500 30 October 2005
2 December 2002 102.0p – 30,000 – – 30,000 2 December 2005
725,000 412,500 (15,000) – 1,122,500
All share options can be exercised between the third and tenth anniversaries of their date of grant. 
During the year a former employee, in accordance with his termination agreement, was entitled to exercise his options prior to the
exercise date. Notes to the accounts
at 31 December 2002 (continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 50
33. Leasing commitments
At 31 December 2002, the Company was committed to making the following payments under non-cancellable operating leases in the
year 31 December 2003:
Land and buildings
2002 2001
£’000 £’000
Operating leases which expire:
Within 1 year – –
Within 2 to 5 years 696 –
After 5 years – 558
696 558
34. Prior years’ claims provisions
(Under) provisions for claims, in respect of managed syndicates, at the beginning of the year as compared with net payments and
provisions at the end of the year in respect of prior years’ claims are as follows:
2002 2001
£’000 £’000
Continuing operations (9,906) (5,247)
35. World Trade Center US terror attacks (“WTC”)
(i) Gross and net loss to the Group
Our estimate of the Group’s gross exposure to WTC is £74.6 million. Net estimated losses are £18.6 million. There has been no
significant movement in the Group’s estimates from last reported position at 30 June 2002. These figures do not take into account the
original premium income on policies which have given rise to the WTC claims. Accordingly, these estimates are not estimates of the
Group’s financial position resulting from these policies. In providing an estimate of these losses, the Group does not make any
admission of liability.
(ii) Assumptions
The following assumptions were used for the purposes of calculating the amount of the Group’s expected losses arising from WTC:
• There were four separate aircraft losses: two at the World Trade Center and one arising from each of the Pittsburgh and Pentagon crashes;
• The losses arising from the attacks on the World Trade Center and to the surrounding properties have arisen from a single occurrence;
• There will be no UK/US Government financial support or intervention benefiting the Group;
• Reinsurance protection available will respond to notifications made under each policy. An appropriate provision for reinsurance
security failure has been made;
• No subrogation recoveries will be made by the Group; and
• An exchange rate of US$1.61: £1 (the rate prevailing at 31 December 2002).
(iii) Methodology
• Classes of business which had potential exposure to losses arising out of WTC were identified and where appropriate reviewed 
on a risk by risk basis;
• An estimate of gross and inward reinstatement premiums for each risk was established using information from placing brokers and
where possible assureds, combined with the Groups own judgement;
• Reinsurance protections were reviewed in order to calculate the anticipated reinsurance recoveries and outwards reinstatement
premiums. Due regard was given to co-insurance, coverage restrictions and previous reinsurance erosion from earlier events; and
• The security underlying the reinsurance protection was assessed, and a provision for bad debt was calculated based upon the latest
available security rating information.
(iv) Material Sensitivities
WTC is expected to give rise to the most complex interaction of possible claims which the insurance market has ever seen. There can,
therefore, be no certainty as to the ultimate losses which will result to the Group. The position is being regularly reviewed, but it could
be a long time before the true nature, scale and payment date of the claims will be known.
The Group has assumed that the losses arising from the attacks on the World Trade Center and to the surrounding properties have
arisen from a single occurrence. This means that an insurer or reinsurer with exposure to losses arising out of the attacks may only
recover from its reinsurers on one occasion in respect of the ensuing losses.
Some 89% of reinsurance security relating to our current estimate of the World Trade Center loss is rated as A or better by Standard 
& Poor’s and/or A M Best Company. The Group has provided for security failure based upon the latest available security rating
information. An adverse change in the security rating of these reinsurers may result in an increase in the net loss arising from WTC. 
The losses arising from WTC are predominately payable in US dollars. The Group, in estimating its net losses, has assumed an
exchange rate of US$1.61: £1. An adverse change in the dollar exchange rate may result in an increase in the net loss arising from WTC. GoshawK Insurance Holdings plc
Annual report and accounts 2002 51
NOTICE IS HEREBY GIVEN that the Annual General Meeting of GoshawK Insurance Holdings plc will be held at 38, St Mary Axe,
London, EC3A 8EX on 14 May 2003 at 10.30a.m., for the following purposes:
Ordinary Business
1. To receive the directors’ report and accounts for the financial year ended 31 December 2002 together with the auditors’ report
thereon. (Resolution 1)
2. To declare a dividend. (Resolution 2)
3. To reappoint A J Gammell, who is retiring by rotation in accordance with the Company’s articles of association, as a director.
(Resolution 3)
4. To reappoint S E C Miller, who is retiring by rotation in accordance with the Company’s articles of association, as a director.
(Resolution 4)
5. To reappoint Ernst & Young LLP as auditors of the Company and to authorise the directors to set their remuneration. (Resolution 5)
Special Business
To consider and, if thought fit, to pass the following resolutions of which numbers 6, 7 and 8, will be proposed as ordinary resolutions
and numbers 9 & 10 will be proposed as special resolutions:
6. To approve the directors’ remuneration report, together with the auditors’ report thereon. (Resolution 6)
7. To reappoint A S Castell as a director, who was appointed by the Board as a director of the Company in accordance with the
Company’s articles of association after the previous annual general meeting. (Resolution 7)
8. That the directors be and are hereby generally and unconditionally authorised for the purposes of section 80 of the Companies 
Act 1985, to exercise all the powers of the Company to allot relevant securities (within the meaning of section 80 (2) of the said Act) 
up to an aggregate nominal amount of £2,930,818 this authority to expire on 13 May 2008 (save that the Company may before such
expiry make an offer or agreement which would or might require relevant securities to be allotted after such expiry and the directors
may allot relevant securities in pursuance of any such offer or agreement as if the authority conferred hereby had not expired). This
authority shall be in substitution for and shall replace any existing authority pursuant to the said section 80 to the extent not utilised 
at the date this resolution is passed. (Resolution 8)
9. That subject to the passing of resolution 8 above, the directors be and are hereby empowered to allot equity securities (as defined 
in section 94 (2) of the Companies Act 1985) for cash pursuant to the authority conferred by resolution 8 above as if section 89 (1) 
of the said Act did not apply to any such allotment, provided that this power shall be limited to the allotment of equity securities:
(a) in connection with a rights issue in favour of ordinary shareholders where the equity securities are proportionate (as nearly as
practicable) to the respective number of ordinary shares held by such holders but subject to such exclusions or other arrangements
as the directors may deem necessary or desirable in relation to fractional entitlements or legal or practical problems arising in, or
pursuant to, the laws of any territory or the requirements of any regulatory body or stock exchange in any territory; and
(b) otherwise than pursuant to 9(a) above, up to an aggregate nominal amount of £439,623 and this power shall expire on 13 May 2008,
(save that the Company may before such expiry make an offer or agreement which would or might require equity securities to 
be allotted after such expiry and the directors may allot equity securities in pursuance of such offer or agreement as if the power
conferred hereby had not expired). (Resolution 9)
Notice of Annual General Meeting Notice of Annual General Meeting
(continued)
GoshawK Insurance Holdings plc
Annual report and accounts 2002 52
10. That the Company be and is hereby generally and unconditionally authorised to make market purchases (within the meaning 
of section 163 of the Companies Act 1985) of any of its ordinary shares of 5 pence each (the “ordinary shares”), provided that:
(a) the maximum number of ordinary shares hereby authorised to be purchased is 17,584,908 representing approximately 10 per cent.
of the issued share capital at 7 April 2003;
(b) the minimum price which may be paid for each ordinary share is 5 pence, exclusive of the expenses of purchase;
(c) the maximum price which may be paid for each ordinary share is an amount equal to 105 per cent. of the average of the middle
market quotations for the ordinary shares of the Company as derived from the Daily Official List of the London Stock Exchange plc
for the five business days immediately preceding the day on which such share is contracted to be purchased;
(d) unless previously revoked or varied the authority hereby conferred shall expire on 13 May 2004; and
(e) the Company may, before the expiry of this authority, conclude a contract to purchase ordinary shares which will or may be
executed wholly or partly after such expiry and may make a purchase of ordinary shares pursuant to any such contract, as if such
authority had not expired. (Resolution 10)
By Order of the Board
Andrew S Fox
Company Secretary
7 April 2003
Registered office: 38 St Mary Axe, London EC3A 8EX GoshawK is a specialist international
insurance and reinsurance underwriter.
It underwrites direct insurance at
Lloyd’s through Syndicate 102 and
reinsurance in Bermuda through its
subsidiary GoshawK Re.
Contents
01 Highlights 
02 Chairman’s statement 
04 Chief Executive’s statement 
08 Finance Director’s report 
12 Directors and advisers 
13 Directors’ report
15 Corporate governance
17 Directors’ remuneration report 
22 Statement of Directors’ responsibilities 
23 Independent auditors’ report 
24 Consolidated profit and loss account 
26 Consolidated balance sheet
28 Balance sheet 
29 Consolidated statement of cash flows 
30 Notes to the accounts 
51 Notice of Annual General Meeting
GoshawK Insurance Holdings plc
Annual report and accounts 2002 53
Notes
1. Proxies
Only holders of ordinary shares are entitled to attend and vote at this meeting. A member entitled to attend and vote may appoint 
a proxy or proxies who need not be a member of the Company to attend (and on a poll to vote) instead of him or her. Forms of proxy
need to be deposited at the registered office of the Company not later than 48 hours before the time of the meeting. Completion 
of a form of proxy will not preclude a member attending and voting in person at the meeting.
2. Documents on display
The register of directors’ interests in the share capital of the Company, together with copies of service agreements under which
directors of the Company are employed, are available for inspection at the Company’s registered office during normal business hours
from the date of this notice until the date of the annual general meeting and will also be available for inspection at the place of the
annual general meeting for a least 15 minutes prior to and during the meeting.
3. Right to attend and vote
To have the right to attend and vote at the meeting (and also for the purpose of calculating how many votes a person entitled to attend
and vote may cast), a person must be entered on the register of members by no later than 10.30 am on 12 May 2003, being 48 hours
before the time fixed for the meeting. Changes to the register after this time shall be disregarded in determining the rights of any
person to attend or vote at the meeting.
Explanatory Notes:
1. Resolution 6
Following the coming into force of the Directors’ Remuneration Report Regulations 2002 on 1 August 2002 this resolution is to
approve the directors’ remuneration report for the financial year ended 31 December 2002. You can find the report on pages 16 to 20
of this document.
2. Resolution 7
This resolution is to reappoint A S Castell as a director of the Company, having been appointed by the Board since the last annual
general meeting, in accordance with the Company’s articles of association.
3. Resolution 8
Your directors may allot shares or grant rights over shares only if authorised to do so by shareholders. Although the authority granted
at the last general meeting is not due to expire until 4 June 2007, Resolution No. 8 will be proposed as an ordinary resolution to grant
a new authority to allot unissued share capital up to an aggregate nominal value of £2,930,818, representing a third of the total issued
ordinary share capital as at 7 April 2003. If given, this authority will expire on 13 May 2008. The directors confirm that there is no
intention to exercise this authority at present, other than in respect of the Company’s obligations under it’s employee share schemes. 
4. Resolution 9
Your directors also require additional authority from shareholders to allot shares or grant rights over shares where they propose to do
so for cash and otherwise than to existing shareholders pro rata to their holdings. Although the authority granted at the last general
meeting is not due to expire until 4 June 2007, Resolution No. 9 will be proposed as a special resolution to grant such authority. Apart
from rights issues, the authority will be limited to the issue of shares up to an aggregate nominal value of £ 439,623 (being five per cent
of the issued ordinary share capital as at 7 April 2003). If given, this authority will expire on 13 May 2008. 
5. Resolution 10
The directors will be given the necessary power to enable the Company to purchase its own shares. Your directors would intend 
to use this power only after the most careful consideration, having taken account of other investment opportunities, appropriate
gearing levels and the overall financial position of the Company and only if they were satisfied that an increase in expected earnings 
per share would result.
The proposed special resolution specifies the maximum number of shares which may be acquired (which represents approximately 
10 per cent. of the issued ordinary share capital as at 7 April 2003), as well as the maximum and minimum prices at which they may
be bought in accordance with the current requirements of the London Stock Exchange. Such authority will expire on 13 May 2004. GoshawK Insurance Holdings plc
38 St Mary Axe, London EC3A 8EX
www.goshawk.co.uk
Designed and produced by College Design, London +44 (0)20 7457 2020
GoshawK Insurance Holdings plc Annual Report and Accounts 2002
INSURANCE
HOLDINGS PLC
Annual Report 
& Accounts 2002