Bermuda-based Quanta Capital Holdings Ltd., a company that provides specialty insurance, reinsurance, and risk consulting services through its affiliated companies, announced that its net income for the second quarter of 2004 was $1.8 million, or $0.03 per diluted share. This compares to a net loss of $4.5 million, or $0.08 per share, for the first quarter of 2004. Net income excluding net realized losses on investments for the second quarter of 2004 was $2.6 million, or $0.05 per share.
The company was formed in May 2003, and raised net proceeds of $505.6 million in a private offering of common shares that closed Sept. 3, 2003. Accordingly, there is no comparative information for the second quarter of 2003.
Gross premiums written for the second quarter of 2004 were $135.0 million, and net premiums written were $114.1 million, which compares to gross written premiums of $118.7 million and net written premiums of $112.5 million in the first quarter of 2004. For the second quarter, reinsurance contributed $67.1 million of net written premiums and direct insurance contributed $46.9 million of net written premiums. Net premiums earned were $56.9 million for the second quarter, compared to $27.2 million for the first quarter of 2004. Revenues from the company’s consulting business totaled $8.3 million in the second quarter of 2004.
Tobey J. Russ, chief executive officer, stated, “We are extremely pleased to report Quanta’s first profitable quarter, and note that this important milestone was achieved in less than nine months since the company commenced writing business. All of our businesses performed in line with or exceeded our expectations during the quarter. As anticipated, our direct specialty lines increased as a proportion of our overall business, with net written premiums accounting for 41 percent of our total underwriting activity during the period compared to 28 percent in the first quarter of 2004. We also saw solid results in our reinsurance business as well as our consulting business.”
Russ continued, “It remains our intention to prudently deploy all of Quanta’s capital by the end of the fiscal year. We believe our ability to allocate and deploy capital to those lines in our portfolio that offer the most attractive returns represents a real strategic advantage for Quanta, as it enables us to remain flexible in a market that is constantly changing.”
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