Asbestos claims, which nearly decimated the Lloyd’s market and bankrupted many Names in the late 1980s and early 1990s, are beginning to impact on the market again. Equitas, the Lloyd’s company set up in 1992 to reinsure and run off its pre-1992 liabilities, last week increased its asbestos claims reserves from £1.7 billion to £8 billion.

While Equitas says it now has sufficient funds for claims, British insurance newspaper the Insurance Times quoted ratings agency Fitch warning that Equitas faces bankruptcy if the current trend of asbestos claims – mainly from the US – continues.

If it were unable to pay its claims, Equitas would be forced to call on its 34,000 Names to fund the shortfall.