Bermuda-based Quanta Capital Holdings reported a third quarter net loss of $37.4 million or 66 cents per share last night due to the four hurricanes that hit the Southeast United States during the period.

This compares to a net income of $1.8 million, or 3 cents per share, for the second quarter of 2004. Net loss excluding net realised gains on investments for the third quarter of 2004 was $37.7 million or $0.66 per share. The company was formed in May 2003, and did not commence its insurance business until the fourth quarter of 2003. Accordingly, there is no comparative information for the third quarter of 2003. In its earnings statement, the company said that these losses offset an otherwise strong quarter in terms of growth in earned premiums and earnings per share compared to the second quarter of 2004.

?The unprecedented series of hurricane events resulted in loss expenses of $45.1 million or $0.79 per share in the third quarter. These hurricane losses are consistent with previously released estimates. Net income for the third quarter excluding hurricane catastrophe losses was $7.7 million, or $0.13 per diluted share.?

Gross written premiums for the third quarter of 2004 were $116.7 million, and net written premiums were $86.0 million, which compares to gross written premiums of $135.0 million and net written premiums of $114.1 million in the second quarter of 2004. Tobey J. Russ, Quanta?s chief executive officer, stated, ?Despite the unusual hurricane losses, which were disappointing, but within our specific risk and capital management parameters, our underlying business continued to grow in the third quarter. Third quarter revenues increased 14 percent and net income excluding hurricane catastrophe losses increased over net income for the second quarter of 2004.?

Mr. Russ said that Quanta is well positioned with in excess of $580 million of cash and investments to support the execution of its speciality lines strategy.

?In response to the recent catastrophes, we have been servicing our clients and delivering on our promise to pay claims promptly.?