Lloyd's has welcomed the announcement of a transaction between Equitas and Berkshire Hathaway.
Lloyd's said that once completed the deal will end the residual legal liabilities of Lloyd's and bring finality to Names reinsured by Equitas.
The transaction will provide a further £3.8bn ($7bn) of reinsurance cover to Equitas and, when finalised, will end liabilities for Names under policies reinsured by Equitas.
It is intended that Lloyd's will make a total contribution of £90 million to the transaction.
Lloyd's chairman, Lord Levene, said: “This agreement marks a significant milestone for Lloyd's. It enables us to close a chapter in Lloyd's history and move forward.
“We have always had every confidence in the management of Equitas and their ability to achieve a solvent run-off. This additional protection, however, is very valuable to Names who were originally reinsured by Equitas and who will now achieve finality post transfer.”
Lloyd's chief executive, Richard Ward, said: “Despite the outstanding performance of Equitas since its inception, the rating agencies sometimes cite it as having a potentially negative impact on the market's ongoing financial strength. The successful completion of this transaction should end that once and for all.”
Recent Related News
Equitas deal puts Lloyd's outlook on positive
Equitas hikes reserves for asbestos claims
S&P: Lloyd's in strong competitive position
