Quanta Capital Holdings will pay former executive Michael J. Murphy $2 million as he departs the three-old-company which placed the bulk of its insurance and reinsurance business into runoff earlier this year.

Mr. Murphy became chief operating officer of Quanta after it formed in 2003 and purchased environmental consulting firm ESC, where he was the principal. About a year-and-a-half ago, he was named to a different post, chairman, office of strategic initiative. Last month, the company announced his resignation from that post as well as from the positions of member and deputy chairman of the board.

According to a regulatory filing, Mr. Murphy's separation agreement will see Quanta pay out $2 million in a lump sum. The company will also pay $25,000 to his attorney to cover legal fees incurred by Mr. Murphy in connection with his separation from Quanta.

Quanta investors have recently seen a number of hefty severance packages paid out as top executives depart the company which has posted losses in all but two of its quarters in operation. Other departures in the last year include the heads of its US and Bermuda reinsurance units, its chief financial officer, its chief executive officer and its chief claims officer.

Robert Lippincott, III, Interim Chief Executive Officer and a director of the company, was elected to serve as deputy chairman of the Board of Directors upon Mr. Murphy's resignation.

Susan Fleming Cabrera has been named a director to fill a vacancy on the Board and to serve until the next annual general shareholders meeting. Ms. Cabrera has been granted options to purchase 25,000 common shares at an exercise price of $2.30 per share.