Equitas, the company set up in 1996 by Lloyd’s of London to handle 1992 and prior years’ liabilities such as asbestos, pollution and other claims, has completed its reinsurance deal with Berkshire Hathaway subsidiary National Indemnity.

The company will reinsure all Equitas liabilities, provide a further $US5.7 billion ($7.01 billion) of reinsurance cover to Equitas and acquire Equitas Management Services.

The current management and employees of Equitas Management Services will continue to conduct the run-off of Equitas liabilities.

The deal means 34,000 individual investors in the Lloyd’s market, commonly referred to as Names, will not have to be concerned with paying more money to cover asbestos and other claims resulting from policies written by Lloyd’s before 1992.

Equitas Chairman Hugh Stevenson says it is excellent news for reinsured Names that the transaction is completed, having received all necessary approvals.

“Reinsured Names can now be reassured by the $US5.7 billion ($7 billion) of extra cover that Equitas enjoys, as a result of which they can regard the prospect of failure of Equitas as extremely remote.”