Lloyd’s asbestos reinsurer Equitas has settled its latest asbestos liability claim, setting up a $US539 million trust account for a subsidiary of US energy services giant McDermott International.

The subsidiary, Babcock & Wilcock, filed for bankruptcy in 2000 after a series of asbestos claims. The trust fund will be subject to various conditions contingent on the company’s reorganisation plan.

Equitas was set up as a run-off reinsurer for long-tail Lloyd’s liabilities prior to 1993, and has reserves of $US5.59 billion for future asbestos liabilities.

In the past two years it has settled $US2.86 billion of asbestos claims.