Equitas, Halliburton $575 M Asbestos Settlement
NU Online News Service, Jan. 30, 2:20 p.m. EST?Lloyd's of London's reinsurer, Equitas, has a reserve of about ?5.3 billion (U.S. $9.7 billion) to cover more asbestos settlements, a spokesperson for Equitas said following a $575 million agreement with Halliburton.[@@]
"We're keen to speak to as many people as we can," said the spokesperson.
The Equitas reserve for asbestos claims, which as of March 31, 2003 was at ?5.3 billion, will be tapped for the Halliburton settlement, he said.
He noted the statement by Glenn Brace, Equitas claims director, released Wednesday when the Halliburton deal was announced, stating that Equitas stands "willing to have similar discussions with any of [its] policyholders, large or small" as long as they are interested in "a realistic settlement."
Simon Wright, Equitas' head of Asbestos Pollution and Health Hazard Claims, said the settlement shows Equitas' "commitment to resolving claims with all Lloyd's policyholders as expeditiously as is reasonably possible."
Equitas was created by Lloyd's in 1996 to reinsure and run-off the 1992 and prior years' non-life liabilities of the Lloyd's market.
The Halliburton settlement puts an end to all asbestos claims against Lloyd's underwriters from the Houston energy and construction company and its subsidiaries, Equitas said. Halliburton's claims against its London Market Company Insurers are not affected by the settlement.
The companies said the Halliburton settlement is contingent upon final confirmation of the bankruptcy plan of reorganization for DII Industries and the other Halliburton affiliates now in bankruptcy and no passage of U.S. federal asbestos reform legislation in the current Congress.
Mr. Wright said the settlement takes care of "the largest single direct liability faced by Equitas." Earlier the company reached a $472 million arrangement with Honeywell, the Morristown, N.J.-based electronic control systems manufacturer.
With completion of the Halliburton settlement, Equitas has now resolved five of its 10 largest asbestos exposures, Equitas said.
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