Quanta Capital Holdings Ltd. yesterday said a public offering of common and preferred shares had been priced, and is expected to bring in total proceeds of about $129 million.

Quanta, a Bermuda insurer, has been under pressure to boost its capital position after sustaining losses of up to $83.5 million from hurricanes Katrina, Rita and Wilma.

The size of the losses, which were on top of about $50 million in losses from 2004 storm activity, raised the concerns of ratings agency AM Best, a company that assigns ratings to indicate the financial strength of insurance and reinsurance companies.

Quanta, which has an 'A-' financial strength rating from Best, saw its rating put under threat of being downgraded to a 'B' rating because of its deteriorated capital position. Most insurers' business prospects depend on their having an 'A-' rating or better.

Yesterday Quanta spokesperson Sabrena Tufts said the company was hopeful that the capital raising, through the offering of both common and preferred shares, will end concerns over the company's financial stability.

"As the capital issuance concludes we expect AM Best to affirm our rating," Ms Tufts said.Quanta filed earlier this month to sell up to 3 million series A preferred shares and up to 10.7 million common shares.

Under the common share offering, priced at $4.75 a share, Quanta expects gross proceeds around $54 million. Quanta also priced an offering of 3 million shares of 10.25 percent series A preferred shares at $25 per share, with a liquidation preference of $25 per share. The gross proceeds from that offering are expected to be $75 million. The company said it granted the underwriters an over-allotment option of 1.71 million shares of common stock and 450,000 preferred shares respectively. The proceeds of the offerings will be used for general corporate purposes.

Quanta shares rose two cents to $5.18 in early trading yesterday on the Nasdaq, as trading volume surged to two million compared to a daily average of about 478,000. The stock traded at a 52-week high of $10.25 in January and a year low of $3.55 in October. The shares closed down one cent at $5.15 on volume of 3,389,026 shares.