NU Online News Service, May 13, 3:00 p.m. EDT–Bermuda-based insurer Quanta Capital Holdings said it is lowering its previously announced first-quarter earning by $2 million because of a newly discovered "calculation error."
On May 2, Quanta reported $1.4 million income for its 2005 first quarter, but the company said this week that its quarterly result would now be revised to a net loss of $644,000.
Quanta said the change was prompted by a need to correct its accounting of policy acquisition expenses for the quarter. The company said its acquisition costs now have been corrected to $20.4 million, as compared to previously reported amount of $18.4 million.
The insurer emphasized, however, that this is an "isolated instance" that only affects financial statements for its latest quarter. The company said it discovered the calculation error during its routine monthly closing process for its books at the end of April.
Quanta said it plans to file an amendment to its Form 10-Q with the Securities and Exchange Commission for the first quarter as soon as practicable.
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