Quanta to Sell Remaining Lloyd’s Interests to Chaucer

Bermuda-based Quanta Capital Holdings Ltd. has announced that it has entered into an agreement for the sale of all of its interests at Lloyd’s to Chaucer Holdings PLC. The Company expects to close this transaction soon.

Quanta’ s interests at Lloyd’ s include its 15 percent interest in Pembroke JV Ltd. and 100 percent of Quanta 4000 Ltd., its corporate member, which is a member of Syndicate 4000.

Following a series of reversals, Quanta sold off most of its business lines, and put others into run-off. It formed a working arrangement with Chaucer in March last year for its Lloyd’s business (See IJ web site – https://www.insurancejournal.com/news/international/2007/03/05/77412.htm).

Upon closing, Quanta subsidiary Quanta 4000 Holding Company Ltd. will receive the return of approximately $116.0 million on deposit with the Society at Lloyd’s, known as “Funds at Lloyd’ s”. These funds are not distributable to Quanta Capital Holdings Ltd. without approval of the Bermuda Monetary Authority.

Quanta noted that it had been “carrying its Lloyd’s interests, consisting of Funds at Lloyd’s, 100 percent of the equity of Quanta 4000 Ltd. and 15 percent of the equity of Pembroke JV Ltd, at net asset value of approximately $107.0 million at September 30, 2007. Upon completion and reflecting transaction costs and other adjustments, this sale will represent receipt of 107 percent of net asset value as of September 30, 2007.”

The bulletin also noted that, “following the sale, the Company will no longer have an underwriting segment and will consist solely of run-off operations.”

Chairman James J. Ritchie commented: “Last year, we announced the formation of Pembroke as a means of stabilizing Quanta’s underwriting operations in Lloyd’s, thereby preserving the value of our investment in Syndicate 4000. The success of that initiative is apparent in today’s announcement; upon closing, we will have successfully secured the earlier-than-expected release of our Funds at Lloyd’s and completed the sale of our interests at a respectable premium above net asset value. We wish Chaucer and the Pembroke management team success in continuing to grow the value of these operations.”

Source: Quanta Capital Holdings – www.quantaholdings.com