Quanta to raise $129mn in ratings bid
Troubled Bermudian (re)insurer Quanta announced last Thursday (15 December) the pricing of its public offering to raise $129mn in at attempt to hold on to its A- AM Best rating.
The company is offering 11,423,340 common shares at $4.75 a share, together with 3,000,000 preference shares at $25 a share.
Underwriters on the deal have an option on a further 1,713,501 common shares and 450,000 preference shares.
Quanta said proceeds will be used to increase the company’s available rated capital and for general corporate purposes.
The (re)insurer recently lost its founding chief executive Tobey Russ, since replaced by board director Robert Lipincott III.
The departure of Russ came less than a month after the appointment of former White Mountains managing director James Ritchie as chairman. Ritchie was appointed days before the company revealed a $59.1mn third quarter loss following the US storms. Despite its launch in 2003 as a specialty vehicle, Quanta revealed a sizable loss of $68.5mn from Katrina and Rita.
AM Best currently holds Quanta’s A- rating under review with negative implications, but the (re)insurer is confident the rating will be affirmed following the successful completion of fundraising.