With a $7 billion deal in the works to take over Lloyd's Equitas operation, Berkshire Hathaway is gambling that the move will be profitable in the long term because of its expertise with asbestos claims, according to a brokerage expert. The move, which analysts greeted positively, will see Equitas–Lloyd's runoff operation for asbestos and other long-term exposures–buying $7 billion in reinsurance from the Berkshire subsidiary National Indemnity Company, which will run its operations.

Besides providing the reinsurance for all Equitas' liabilities, National Indemnity will take on the staff and operations of Equitas and conduct the runoff of Equitas' liabilities.

Paul Little, executive vice president and chief brokerage officer of Holborn Corporation, a reinsurance brokerage, said Berkshire has substantial background in the area of asbestos claims. In 2001 it purchased Johns Manville, a major manufacturer of asbestos products before asbestos injury claims soared out of control.