Quanta Capital Holdings Ltd., which placed all but its Lloyd?s of London business into runoff last year, reported a net profit of $3 million in the third quarter of 2006 compared to a loss of $59 million in the same period in 2005.

For the nine month to September 30, the troubled insurer posted a loss of $57 million compared with a $51.2 million loss in the same period last year.

Quanta announced a joint venture with London-based Chaucer Holdings Plc in October that should secure the future of its ongoing Lloyd?s operations.

Gross premiums written by Quanta?s Lloyd?s unit in the third quarter were $22 million. However the company reported negative gross premiums of $6.7 million for the third quarter 2006, as it returned some $32.9 million of premiums to clients that cancelled contracts with the company.

Overall, net premiums earned were $49.2 million for the three months ended September 30, 2006, compared to $100.5 million in the same period in 2005.

?The decrease in premiums earned was largely due to the significant adverse effects on the Company?s business arising from the A.M. Best ratings downgrade in March 2006, and the subsequent decision to cease writing new business in all but the Company?s Lloyd?s syndicate,? the company said.

?Third quarter 2006 technical services revenues were $0.8 million, compared to technical services revenues of $8.6 million for the third quarter 2005. The decrease is due to the fact that the existing environmental liability programmes are substantially completed and the company has not entered into new environmental liability program transactions.?

Expenses fell to $20.6 million from $30.7 million for the third quarter as the company is continued its expense reduction initiatives.