Equitas: Big Claims Drop For 6 Month Period

Equitas: Big Claims Drop For 6 Month Period

By Lisa S. Howard, International Editor

NU Online News Service, Dec. 4, 1:35 p.m. EST, London?Claims paid by Equitas for the six-month period ended Sept. 30 came to ?451 million ($708.1 million), compared with ?798 million ($1.3 billion) during the same period last year.

Despite the reduction in overall claims paid, Equitas reports that U.S. asbestos claims filings and average claims settlements have continued to rise, while new companies are being targeted by asbestos claimants. As a result, Equitas said it may be necessary to increase asbestos reserves at the end of the financial year following an actuarial review.

"A large number of new asbestos claims have been filed by persons who have not been impaired by exposure to asbestos," Equitas Chairman Hugh Stevenson said a statement.

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

Equitas said it is encouraged by the impact of documentation requirements and other asbestos claims initiatives, which were implemented in June 2001 for direct claims and in November 2001 for reinsurance claims. An Equitas representative said he didn't have statistics on how these requirements may have reduced claims figures.

Equitas also announced that Michael Crall, who has been chief executive officer of Equitas since its inception in 1996, will retire in November 2003 when he is 60 years old. He will remain on the board of directors as a non-executive director.

Mr. Crall will be succeeded by Scott Moser, who has been Equitas' claims director since April 1997.