The Board of Equitas and the Equitas Trustees have written to all Reinsured Names announcing three consultation meetings in January. Equitas is the vehicle established in 1996 by Lloyd’s to run-off its pre-1992 liabilities, principally asbestos and environmental claims.
The bulletin noted that the “document also provides further details of the proposed agreement with National Indemnity, a subsidiary of Berkshire Hathaway, under which National Indemnity will take on the run-off of Equitas while providing up to US$7 billion of additional reinsurance cover” (See IJ web site Oct. 20).
The meetings for Reinsured Names are scheduled to be held in Edinburgh on January 15, in Manchester on January 18 and in London on January 19 2007.
The announcement noted that the first phase of the agreement “will come into effect when three conditions are satisfied:
– The Financial Services Authority gives all necessary approvals;
– The Superintendent of Insurance of the State of New York consents to the withdrawal and application of the assets held in the Equitas American Trust Fund towards payment of the premium;
– The Equitas Trustees approve the agreement.
The agreement will terminate if these conditions are not satisfied by 31 March 2007.”
Equitas also confirmed that it “intends to pay an initial return premium upon implementation of Phase 1 of the agreement. The proposed initial payment of £50 million [$98.36 million] is also subject to approval by the Financial Services Authority.
“To be eligible for any payment due, Reinsured Names must confirm details of their address to Equitas on a form which has also been sent to them with the information document.”
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