Quanta Capital Holdings Ltd., a Bermuda insurance and reinsurance company, last night reported a third-quarter net loss of $59.1 million after heavy hurricane losses.

This is the second year running that Quanta ? which counts 2005 as its second full year of business ? has suffered significant storm losses.

And this time around the blow has forced Quanta to bow out of selling property reinsurance and insurance policies, just as many other companies are ramping up this area in the expectation that rates will rise.

This year?s unusually active hurricane season has battered property-casualty insurers, leaving them with a total bill of $75 billion or more.

Most of the industry?s losses stem from Hurricane Katrina, the devastating August 29 storm that hit the Gulf Coast region and could leave insurers with a bill of up to $60 billion.

Scientists have warned that various factors, including global warming, could lead to increased storm activity for years to come.

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.?

Quanta, which could see additional losses in the fourth quarter from Hurricane Wilma, did not disclose any new information on efforts to raise capital. It is expected the company will move to boost its capital position to lessen the threat of a downgrade to its financial strength and other ratings. Ratings firm AM Best has asked Quanta to work with it to address areas of concern, including its capital adequacy.

Quanta?s quarterly loss reduced shareholders? equity to $370 million at the end of September compared to $430.9 million at the end of 2004.

James J. Ritchie, who recently replaced Mr. Russ as chairman, said Quanta will shift its focus to selling more specialty insurance business, where the company is positioned ?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,? Mr. Ritchie said, having last week, when made chairman, promised to spend significant time helping Quanta boost its profitability.

Quanta will build its specialty business ?in a cost effective manner?, Mr. Ritchie said.

The company?s $59.1 million loss amounted to a loss of $1.04 a diluted share, compared to a net loss during the same period last year of $37.4 million, or 66 cents a diluted share, during the year-ago period.

On the operating side, Quanta posted a loss of $57.9 million, or $1.02 a share. Operating income or loss is the measure used by many who track the insurance industry. It excludes net realised gains or losses.

Quanta?s net operating loss in the third quarter of 2004 of $37.7 million, or 66 cents per share.

While suffering a larger year-on-year loss, Quanta sold more policies than in 2004.

During the quarter, the company?s gross policy sales rose 47 percent to $171.5 million and net written premiums were $116.0 million, which compared to gross written premiums of $116.7 million and net written premiums of $86 million in the third quarter of 2004.

And specialty insurance contributed $62.1 million of the period?s net written premiums, while speciality reinsurance contributed $53.9 million. Net premiums earned in the third quarter were $100.5 million to $65.5 million for the third quarter of 2004.

Technical services revenues for the third quarter were $16 million compared to revenues of $7.7 million for the third quarter of 2004. The company offers specialist services through an environmental consulting arm it acquired when it set up in 2003.

Quanta will host a conference call to its quarterly results this morning at 10 a.m. Bermuda time. A live webcast can be accessed at www.quantaholdings.com.

The company?s shares yesterday closed up 31 cents, or 7.75 percent, to $4.31.