Bermuda-based Quanta Capital Holdings Ltd. has named Peter D. Johnson, a veteran insurance executive with extensive experience as a runoff specialist, as the Company’s new President and CEO.
He was the Chairman and CEO of the Home Insurance Company during its run-off from June 1995 to March 2003, and succeeds interim CEO Robert Lippincott III, who will continue as Deputy Chairman and a member of the Executive Committee of the Quanta Board. Quanta’s Chairman, James J. Ritchie was named Executive Chairman of the Company.
Quanta was heavily impacted by last fall’s hurricanes. Earlier this year it announced that it had ceased writing new business and was preparing to put its operations into runoff, with the exception of its Lloyd’s syndicate and ESC, its environmental consulting business, which it will continue to operate. (See IJ Website May 26.)
Quanta’s bulletin said the Board “made these management moves in support of three separate decisions that form the basis of the Company’s strategy moving forward.” Quanta said it would:
— Continue to participate in the underwriting activities of the A-rated Lloyd’s market by maintaining its investment in Syndicate 4000 and will continue to work toward concluding the transactions contemplated by the previously announced Heads of Agreement with Chaucer Holdings PLC, the specialist Lloyd’s insurer, and the senior underwriting team of Syndicate 4000.
— Pursue an orderly, self-managed run-off of its remaining insurance and reinsurance operations which, in the Board’s view, is the best means for preserving value for shareholders. During this run-off, we will continue to work with our regulators including the Bermuda Monetary Authority.
— Pursue the sale of the ESC subsidiary, an environmental consulting company that is not engaged in insurance operations; however, there can be no assurances that such a sale will take place.
Ritchie stated: “After a careful review, Quanta’s Board has determined that it is in the best interests of the Company and its shareholders to support the future underwriting operations of Syndicate 4000 while pursuing an orderly, self-managed, run-off of Quanta’s remaining insurance and reinsurance businesses. Peter is a specialist in discontinued insurance operations and claims management and has an established track record in this area with industry leaders including Zurich Insurance, Aon and others. Peter’s experience includes managing the largest run-off in the history of North American insurers. We welcome him to the helm, and look forward to working together to achieve the best outcome possible for all of our stakeholders.”
He added that “Bob Lippincott has done a great job during his tenure as Interim Chief Executive Officer as he positioned the Company to be successful in its future endeavors. He has brought a seasoned and experienced perspective to the management team. I look forward to continuing to work with Bob through his continued services on our Board of Directors and the Executive Committee.”
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