The largest insurance venture to set up in Bermuda this year - Quanta Reinsurance Ltd. - now has more than $500 million in capital behind it.

Quanta, which is the only reinsurer of its size to incorporate so far this year compared to a wave of class four companies in late 2001 and through 2002, this week completed the private placement deal which saw it reap net proceeds of some $505 million.

A Press statement issued by investment company Friedman, Billings, Ramsey & Co., Inc. - which acted on behalf of Quanta in the placement - said Quanta was a newly formed Bermuda company set up to provide insurance and reinsurance products, as well as risk management and consulting services.

Class four insurers, as the largest class of insurance company in Bermuda, must maintain minimum capital and surplus of $100 million.

Quanta could have actually got off the ground earlier this year, as it initially incorporated in June, but The Royal Gazette understands, from documents issued by the insurance division of the Bermuda Monetary Authority, that there was initially a hitch in Quanta getting off the ground.

The company's initial incorporation was to be short lived when Quanta was subsequently and voluntarily wound up.

But the company once again incorporated in Bermuda under the same name - Quanta Reinsurance Ltd. - on August 15, 2003.

In the Press statement issued this week, Quanta CEO Tobey Russ said the money from the offering would be used to capitalise the Quanta companies: "The net proceeds from this offering will be used to capitalise our corporate entities and establish initial operations; to purchase US licensed insurance and reinsurance shells; to acquire Environmental Strategies Corporation; and to fund working capital, as well as for other corporate purposes.

"We believe that our technical expertise will allow us to write a diverse portfolio of specialty lines that have the potential to provide underwriting profit even through the market's cycles.

"Our goal is to develop the most technically advanced risk underwriting and assessment platform in the insurance industry."

Beyond that little was known yesterday about the new company which did not even appear to have a telephone listing in Bermuda. Telephone calls by The Royal Gazette to Friedman, Billings, Ramsey & Co., for further information had not been returned by Press time last night.