Equitas, Hercules Inc. Reach Asbestos Agreement

Equitas, Hercules Inc. Reach Asbestos Agreement

NU Online News Service, Aug, 30, 12:18 p.m. EDT?Equitas, the Lloyd's runoff operation, said it has reached an agreement to settle asbestos claims from global chemical manufacturer Hercules Inc.[@@]

The claims are against certain underwriters at Lloyd's of London reinsured by Equitas. As a result of the agreement, Equitas said it will pay a total of $97 million?$30 million to Hercules and $67 million to an asbestos trust that has been established to resolve asbestos-related claims made against Hercules.

Equitas said specific terms of the settlement agreement with the Wilmington, Del.-based Hercules remain confidential.

The company said the agreement generally contains criteria that must be satisfied for asbestos claims to be paid from the trust, limits on the amount that may be drawn from the trust in any month, and provides for the repayment of an element of the funds held by the trust should federal asbestos reform legislation be passed prior to 2007 and certain repayment criteria be met.

Simon Wright, Equitas' Head of Asbestos Pollution and Health Hazard Claims, 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."

Mr. Wright said Equitas is actively involved in a number of negotiations with other policyholders "and remains willing to have similar discussions with all counterparties that are prepared to engage in a realistic and commercial dialogue."

Based in London, Equitas was established to reinsure and run off the 1992 and prior years' non-life liabilities of Names, or Underwriters, at Lloyd's of London.

Equitas actively manages the non-life liabilities arising from policies written by Lloyd's syndicates in 1992 and prior years. This includes agreeing comprehensive settlements and policy buy-backs that extinguish current and future claims from these policyholders.