Equitas has agreed a settlement with Hercules Incorporated over its claims against certain Lloyd's underwriters reinsured by Equitas.
Equitas will pay a total of $97m, $30m of which will go to Hercules, with the remaining $67m being paid into an asbestos trust established to settle asbestos-related claims made against Hercules.
The settlement sets out criteria that must be satisfied before asbestos claims can be paid by the trust, as well as a limit on the amount that can be drawn from the trust in any one month.
It also provided for the repayment of an element of the funds held in trust should federal asbestos reform legislation be passed prior to 2007 and certain repayment criteria be met, said Equitas.
Equitas head of asbestos pollution and health hazard claims Simon Wright said: “We are pleased to announce another comprehensive resolution of claims with a major policyholder.
“This settlement with Hercules is an important addition to the policy buy-back agreements we have reached in the last two years and again demonstrates Equitas' commitment to resolve claims at a fair price at the earliest opportunity.
“We are actively involved in a number of negotiations with other policyholders and remain willing to have similar discussions with all counterparties that are prepared to engage in a realistic and commercial dialogue.”
