Equitas is the general label given to a group of companies linked to Lloyd's of London. It was set up in 1996 specifically to reinsure liabilities that had accumulated in the syndicates at Lloyd's of London on policies written from the 1930s up to and including 1992. This business was reinsured by Equitas Reinsurance Limited, which was also appointed as run-off agent. The liabilities were retroceded to Equitas Limited, to which Equitas Reinsurance Limited has also delegated its run-off function. Lloyd’s Building, London (with the blue cranes). ... Lloyd’s Building, London (with the blue cranes). ...

The proposal to set up the structure was accepted by 90% of the 34,000 'Names' who under-wrote policies at Lloyd's, and it became mandatory for all members to reinsure their liabilities into Equitas. When it started it had £15 bn of liabilities at net present value, which were expected to take up to 40 years to settle. It also had assets amounting to 105% of the liabilities, making it the largest start-up company to date. It is not allowed to take on fresh business but it remains the largest solvent run-off reinsurer globally. Net present value (NPV) is a standard method for financial evaluation of long-term projects. ...

Equitas is run by directors. It is owned by trustees who hold the shares on behalf of those who reinsured their liabilities into it.

From the Company's recent press release (i.e. non POV) - 2006 (2005)

• Total assets £4,866m (£5,031)
• Total liabilities £4,866m (£5,031)
• Solvency margin 12.0% (12.2%)

The company believes its assets are adequate to pay its liabilities in full but the accounts are qualified because of the inherent uncertainty in quantifying the liabilities.

News update - 27 March 2007

National Indemnity, a subsidiary of Berkshire Hathaway has provided an additional $7bn of reinsurance to Equitas. The purchase has been approved by UK and US regulators. National Indemnity will take over the staff and the running of Equitas, together with all its assets and liabilities, with effect from 2 April 2007.Equitas will be renamed Resolute Management Services Limited. Part of the deal is that, £90m was contributed by Lloyd's. There should be a small distribution to all reinsured Names, who were consulted about the deal. National Indemnity Company is an insurance company based in Omaha, Nebraska. ... Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a large holding company headquartered in Omaha, Nebraska, USA, that oversees and manages a number of subsidiary companies. ...

Equitas now seeks to novate the remaining liabilities, subject to high court approval. This process can only be progressed once the law in England has changed to allow it, which is in progress.

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Opposition to the buy-out