Tobey Russ, founder, chief executive and until recently chairman of troubled Bermuda reinsurer Quanta Capital Holdings Ltd., last night resigned from the company.

In a Press statement, issued after market close, Quanta said Robert Lippincott III, a 36-year veteran of the industry, was to become interim chief executive officer, replacing Mr. Russ. The company did not say in its release the reason for Mr. Russ? departure, and a company spokesperson could not immediately be reached for comment.

Quanta has been under the gun since A.M. Best put the company?s A- financial strength rating on negative watch after large third-quarter catastrophe losses threatened to undermine the company?s capital position.

It has said it will raise capital, and must do so before the end of the year, but no further details have been announced.

The fledgling company, formed in 2003, has been hit by losses from Atlantic hurricane activity for two years running. It posted a net loss of $59.1 million in the third quarter, and a loss of $37.4 million in the year-prior period.

Quanta shareholders? equity at the end of September was $372.2 million.

The beleaguered company has also been hit by a number of executive departures, with two of its senior reinsurance management ? Rick Pagnani and David Whiting ? quitting the company in recent weeks, and the earlier departure of its chief financial officer John S. Brittain.

Quanta also announced last night that its interim chief financial officer Jonathan J.R. Dodd, who was comptroller before Mr. Brittain?s departure, was to assume the post on a permanent basis.

The company has also not had a chief operating officer since earlier in the year.

In late October, Quanta announced James J. Ritchie was to replace Mr. Russ as chairman.

Mr. Ritchie, Mr. Lippincott and Mr. Russ were at the time appointed to an executive committee charged with execution of Quanta?s revised strategy, which included the need to raise capital or risk a downgrade from A.M. Best, and to focus on selling speciality insurance after the company decided to bow out of selling certain property-catastrophe insurance and reinsurance policies, which had been its bread-and-butter business.

Yesterday Quanta said Mr. Lippincott, who also sat on the audit committee, would step down from that position because he could no longer be considered an independent director.

Quanta said the management shake-up meant its board was no longer comprised of a majority of independent directors. To rectify this, its governance and nominating committee are now searching for an additional independent director.

Quanta investors yesterday pushed shares up by 37 cents, or nine percent, to $4.48 in trading on the Nasdaq. The company is currently trading at less than half its 52-week high of $10.25, but has moved up from a low of $3.55. Quanta?s shares have slumped since Hurricane Katrina hit on August 29 ? with the costly storm expected to dent insurance balance sheets by up to $60 billion.