Equitas has agreed to pay $84.5m to American Standard Companies to settle outstanding asbestos claims against underwriters at Lloyd's reinsured by the run-off.

Equitas said $10m would be paid in the first quarter. The remaining balance will be placed in a trust to meet future asbestos related claims.

The agreement provides for the repayment of part of the settlement funds should federal asbestos reform legislation be passed and certain repayment criteria be met.