Finality At Long Last For Lloyd´s Names - The Equitas Part VII Transfer

The High Court recently approved a landmark statutory transfer under Part VII of the Financial Services and Markets Act 2000 ("FSMA"), the largest and most significant of its kind to date, that will bring finality to members of Lloyd's with 1992 and prior liabilities.

On 30 March 2007, Equitas Limited ("Equitas") and others agreed a run-off reinsurance contract with National Indemnity Company ("National Indemnity"), a member of the Berkshire Hathaway Group of companies, under which National Indemnity provided US$5.7 billion of reinsurance coverage to Equitas in excess of Equitas' adjusted reserves as at 31 March 2006. At the same time, Equitas Management Services Limited was transferred into the Berkshire Hathaway Group and renamed Resolute Management Services Limited, with responsibility for the run-off of the liabilities reinsured by Equitas as agent for the Names.