Bermuda-based reinsurer Quanta Capital Holdings yesterday revealed its net losses related to a ruptured oil pipeline will be $4.9 million more than the $7.5 million it previously estimated.

Quanta has also suffered the departure of another senior executive, this time losing the head of its environmental liability division ? the unit that wrote the California policy responsible for the increased loss.

On a gross basis, the accident?s loss is now to be revised upward by $8.3 million, a regulatory filing with the Securities and Exchange Commission said. The first quarter accident will be recorded in the fourth quarter, a company spokesperson said.

The California policy was issued by the company?s environmental liability division, a specialist unit that Quanta has previously said set it apart from other companies. The importance of the unit, as well as other units that focus on selling casualty policies, has grown since the company last quarter decided to bow out of selling most types of property-catastrophe insurance and reinsurance, areas that had contributed significantly to business in its three years in business.

The company exited those lines after it was hit by large losses from the record 2005 storm season.

Quanta also disclosed it expects to realise $3 million more in reinsurance payments in the fourth quarter, related to claims from September?s Hurricane Rita.

The company recently completed a capital raising exercise, a measure it had to do to hold on to its A.M. Best A- financial strength rating. The rating came under pressure because of the company?s storm losses. Quanta has said it could sustain losses of up to $83.5 million from hurricanes Katrina, Rita and Wilma. It also sustained about $50 million in losses from the 2004 hurricane season.

Investors reacted to news of Quanta?s 2005 losses by cutting the value of its share price, with the stock falling as low as $3.55 from a 52-week high of $10.25. The share price has regained some lost ground since, yesterday closing on the Nasdaq at $5.28.

Amidst the company?s financial woes there were several high-profile management departures, including its founder and chief executive Tobey Russ quitting the company. An interim chief executive, Robert Lippincott, has been appointed.

BB&T Capital Markets, an investment firm that follows Quanta, yesterday in an investor note said a change in senior management typically takes up to 12 months to settle. But in the case of Quanta, it said investor patience could run out sooner because it is not a mature company and does not have years of operating reserves to sift through.

But it still gave the company its vote of confidence. ?We do not believe investors will (or should) shy away from Quanta. In our view, investors should use any weakness in the stock as a buying opportunity,? the firm said.

In addition to losing its CEO, the head of Quanta?s reinsurance business, and the head of its Bermuda unit also departed in recent months. At least one director, Wallace Timmeney, has also resigned. And now John Welter, who was president and chief underwriting officer for the environmental liability division has left. Mr. Welter was previously chief underwriting officer of Chubb Environmental Solutions. Numerous staff that had worked for Chubb joined Quanta when it formed.

The company said it could not disclose any information on the reasons for Mr. Welter?s departure. His name has been removed from the company?s website, and it appears that Rich Calvert has succeeded him as chief underwriting officer for the Environmental Liability division.

Quanta may also have seen another high-level departure from its Bermuda office, according to market sources.

Quanta is due to report fourth quarter earnings after market close on February 27.