Equitas

~3 min read

Category: Lloyd's market · Reviewed by Al Jabbar, Broker · Specialist Risks · Last reviewed 2026-06-05

In short: Equitas is the reinsurance to close vehicle established in 1996 to accept the long-tail liabilities of Lloyd’s pre-1993 underwriting years — predominantly asbestos, pollution and certain US casualty exposures. The Equitas arrangement was central to the reconstruction and renewal of Lloyd’s following the crisis of the early 1990s.

Category: Lloyd’s market Also known as: Equitas Reinsurance, Equitas Insurance Limited Established: 1996 (Reconstruction and Renewal of Lloyd’s) Related concepts: Names at Lloyd’s, Unlimited liability Names, Lloyd’s of London

Definition

Equitas was established by Lloyd’s as the entity into which all pre-1993 Lloyd’s syndicate years of account were reinsured to close. Names paid a single premium to Equitas (funded from the Names’ assets and from Lloyd’s central resources) in exchange for Equitas accepting their open-year liabilities. The arrangement crystallised the Names’ exposure at a defined sum and allowed them to exit Lloyd’s underwriting.

Equitas was originally domiciled in the United Kingdom and authorised as a reinsurer. In 2006 the principal reinsurance arrangement was transferred to Berkshire Hathaway’s National Indemnity Company under a Part VII transfer (Financial Services and Markets Act 2000), with Equitas continuing in a runoff/management role.

Legal / Regulatory basis

The Equitas arrangement was given effect by the Reconstruction and Renewal Plan of Lloyd’s of 1996, supported by Lloyd’s bylaws and accepted by Names through individual settlement contracts. The Part VII transfer to National Indemnity in 2006 was approved by the High Court under section 111 of the Financial Services and Markets Act 2000 [1].

How it works in practice

In practice Equitas (now National Indemnity through the Berkshire arrangement) administers and pays the runoff of the pre-1993 Lloyd’s claims. The reinsurance to close arrangement has substantially performed: most asbestos and environmental claims are now being paid in the ordinary course, with the runoff continuing as long-tail claims emerge.

For modern Lloyd’s syndicates and members, Equitas is principally of historical interest. Its successful establishment and operation is, however, a critical part of Lloyd’s modern credit standing: rating agencies and policyholders are confident that pre-1993 legacy is fully reinsured and does not threaten contemporary Lloyd’s underwriting.

Example

An illustrative example: a US asbestos claim emerging in 2025 under a Lloyd’s policy issued in 1972 is administered by National Indemnity (as successor to Equitas) and paid out of the consolidated reserves established for the runoff. The contemporary Lloyd’s market is unaffected by the claim.

References

Financial Services and Markets Act 2000, Part VII — https://www.legislation.gov.uk/ukpga/2000/8
Lloyd’s Reconstruction and Renewal Plan 1996 — https://www.lloyds.com
Lloyd’s Act 1982 — https://www.legislation.gov.uk/ukpga/1982/14

This entry is part of the Apex Insurance Wiki. Last reviewed by Apex Insurance Brokers on 2026-06-05. Next review: 2026-12-05.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.

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