Quanta Capital Holdings Ltd. has reported its financial results for the third quarter ended September 30, 2006. The Company said it “had a negative $6.7 million in gross premiums written for the three months ended September 30, 2006 as compared to $171.5 million for the three months ended September 30, 2005. The gross written premiums for the third quarter of 2006 include approximately $22.1 million from the Company’s Lloyd’s syndicate and are net of $32.9 million of gross premiums written that were returned to our clients through cancellations.”
The results reflect the run-off of most of the Company’s business, the sale of its U.S. environmental unit, Environmental Strategies Consulting LLC to WSP Environmental Holdings (See IJ Website Sept. 19), and the decision to form the Pembroke Managing Agency Limited with Chaucer Holdings PLC (See IJ Website Oct. 26, 31, May 26).
The bulletin stated: “During the third quarter of 2006, Quanta and its Board of Directors announced its intention to pursue an orderly, self-managed run-off of the Company’s insurance and reinsurance operations other than Lloyd’s. At the same time, the Company also announced that it will continue to participate in the underwriting activities of the A-rated Lloyd’s market by maintaining its investment in Syndicate 4000 at least through the 2009 underwriting year. It is the Board’s view that these actions are the best means to preserving value for Quanta’s shareholders.”
Given its current profile, Quanta said it “believes that comparisons with prior year results are neither meaningful nor indicative of future results. This is because the Company only retains a portion of its ongoing business and is running off its remaining business in this quarter as compared to the third quarter of 2005, when it was fully engaged in the insurance and reinsurance business.”