Equitas has revealed that it is encouraged by the market's handling of the current asbestos crisis.

The company, which was set up to reinsure nonlife liabilities of Lloyd's syndicates, also announced that the number of asbestos claims and the amounts paid by policyholders continue to rise.

In its half year statement Equitas said it was encouraged by the asbestos claims management initiatives which have been adopted.

However it did raise concern over the number of companies being targeted by asbestos claimants.

Chairman Hugh Stevenson said: "A large number of the new asbestos claims have been filed by persons who have not been impaired by exposure to asbestos.

"We remain firmly committed to ensuring that, except in special circumstances, Equitas reimburses only valid
claims in which asbestos related injuries can be documented."

Despite its efforts to limit the financial impact of asbestos claims, it revealed it may be forced to increase asbestos reserves.

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