Bermudan reinsurer Quanta Capital has reported that its net loss for the third quarter of 2005 was $59.1m and confirmed that it is withdrawing from property underwriting to concentrate on specialty lines.
The hit to earnings compares to a net loss of $37.4m for the third quarter of 2004.
Tobey J Russ, Quanta's chief executive, said, "Given the increased uncertainty surrounding the frequency and severity of future hurricanes and the additional rating agency requirements for capital adequacy, we are curtailing our property reinsurance and technical property insurance lines of business.
"The capital that becomes available as a result of this process will be redirected to our specialty insurance businesses."
Russ added: "If we look at the performance of our businesses without the impact of hurricanes, our net income excluding these catastrophe losses was $12.6m for the third quarter of 2005. Our net income excluding catastrophes was $7.7m for the third quarter of 2004."
James J Ritchie, Quanta's chairman, said: "Our specialty insurance businesses operate in attractive lines and through broad geographic locations that position us to take advantage of very favourable market conditions. We entered these markets at a strong point in the pricing cycle, we have a sound balance sheet and a portfolio of products priced at solid rates."
