Quanta Capital Holdings, a Bermuda insurer battered by losses from heavy Atlantic storm activity for two years running, has now been hit by the departure of two of its senior reinsurance executives ? one of whom had oversight of the company?s Bermuda units.

The departures deflate Quanta?s management ranks on the reinsurance side, but also compound a management vacuum already created by the departure of its chief financial officer and its chief operating officer earlier in the year.

David R. Whiting, president, Quanta Bermuda Reinsurance, is the latest departure, leaving the company on Tuesday. Mr. Whiting joined Quanta, in business since 2003, during its formation.

Quanta spokesperson Sabrena Tufts said it had not yet been decided whether Mr. Whiting will be replaced.

Mr. Whiting told he left Quanta to join a new reinsurance company currently in formation, but could not give further details as the company is still in the midst of raising its initial capital.

He said his departure was a simple case of ?a better opportunity? coming along, in what was a ?very exciting market?.

A wave of new highly-capitalised reinsurers are flocking to set up on the Island ? at least seven have been licensed so far ? based on an expectation that insurance and reinsurance rates will rise after capacity was drained away by Hurricane Katrina, and the season?s other costly storms, Rita and Wilma.

Estimates put the total insured cost from this year?s Atlantic storm activity up to $80 billion ? of which Katrina could cost as much as $60 billion.

Ms Tufts said Mr. Whiting?s oversight of Quanta?s Bermuda office has been handed to Mark B. Cloutier, Quanta?s chief claims officer and president, technical services.

Mr. Whiting?s departure comes on the heels of Rick Pagnani, global head of Quanta?s reinsurance operations, also quitting the company in recent weeks ?to pursue other opportunities?.

Tobey Russ, chief executive, said on the company?s November 1 third-quarter conference call that it was uncertain whether Mr. Pagnani would be replaced.

Former chief financial officer John S. Brittain left earlier in the year. He has not been replaced yet but Jonathan J.R. Dodd, previously Quanta?s principal accounting officer, is serving as interim chief financial officer.

And Michael Murphy, who had been chief operating officer, also vacated that position earlier in the year. Mr. Murphy, with the company since its formation, is now Quanta?s chairman, office of strategic innovation.

In the third quarter, Quanta posted a net loss of $59.1 million, and a year prior, a net loss of $37.4 million.

Suffering serious losses year on year led Quanta to recently reduce the breadth of insurance and reinsurance policies it will sell ? bowing out of selling certain types of catastrophe insurance and reinsurance in favour of developing its specialty lines insurance business.

But a change in business tack won?t be enough on its own to keep Quanta going. The company has been warned it has to replenish its capital, a move it may do by tapping the capital markets.

Quanta is under pressure after the losses raised questions by ratings firm A.M. Best over the company?s capital adequacy.

Quanta earlier filed a registration statement to issue one or more offerings of up to $125 million of trust preferred securities or preferred securities or both. No details of its final plans have been made. The company needs to boost its capital before year-end or will risk a downgrade of its A- (Excellent) financial strength rating.

?We have no reason to believe that AM Best will have cause to downgrade,? Mr. Russ said. ?We?re working on a plan with them that I believe ultimately they will approve... we are not working on the basis that we will run this company with anything less than an A rating.?

Quanta is only rated by A.M. Best, one of the largest insurance rating and information agencies.

Quanta also plans to reduce its costs. ?We now face the reality of being a much smaller company than we anticipated at this point in time,? Mr. Russ said on the quarterly conference call.

Quanta will ?implement meaningful cost reduction measures in order to bring the company?s expense structure in line with its current size, so that we may grow?, he added.

On board to help the company reduce costs, and hopefully return to profitability, is a new chairman and an executive committee.

Mr. Russ was chairman until an announcement late last month that he was to be replaced by James Ritchie.

Mr. Ritchie said he expects to devote ?significant time and attention? to help Quanta become more profitable.

The executive committee is made up of Mr. Ritchie, Robert Lippincott III and Mr. Russ. It has been charged with guiding management on the execution of Quanta?s revised strategy.

Quanta, which trades on New York?s Nasdaq, closed up one cent to $4.32 yesterday.

In the last year Quanta?s shares have traded between $3.55 and $10.25.

Quanta, as well as other insurers, saw share prices slump shortly after Hurricane Katrina made land in the Gulf Coast region.

The costly damage left by Katrina raised investor concerns. Bermuda?s insurance and reinsurance companies posted losses in the third quarter of about $8 billion.

And most expect to see additional losses in the fourth quarter from Hurricane Wilma.