Reinsured Names no longer have any
legal responsibility for Lloyd's pre-1993 policies under UK law. The
ALM therefore believes that its Category C members will no longer
require its services after this year, as this category exists for Names
who have resigned from Lloyd's and have no open years, so that their
only remaining involvement was their liability for the policies
reinsured by Equitas.
Accordingly, the December 2009 issue is the last issue of the Equitasian and its publication will now cease. The
ALM will therefore not collect any further subscriptions (including any
subscriptions which would otherwise have been collected in January
2010) from Category C (Equitas only ALM members).
The
Equitas website remains a valuable source of information and Names who
require further information can access it at www.equitas.co.uk.
Equitas Part VII Transfer
In October 2006 Equitas entered
into an agreement under which National Indemnity Company, a member of
the Berkshire Hathaway group of companies, reinsured all Equitas'
liabilities and took on the run-off of Equitas' liabilities.
The transaction was structured to occur in two phases. Phase I was completed in March 2007.
The High Court made an order on 25 June 2009 approving the statutory
transfer of the 1992 and prior non-life business of members and former
members of Lloyd's to Equitas Insurance Limited. Mr Justice Blackburne
was firmly of the view that it was appropriate to sanction the transfer
scheme. The transfer covers all the business reinsured by Equitas
Reinsurance Limited at the time of Reconstruction and Renewal in 1996,
and includes the PCW syndicates' business reinsured by Lioncover
Insurance Company Limited and the Warrilow syndicates' business
reinsured by Centrewrite Limited. The transfer became effective on 30
June 2009, after which time Names are no longer liable for their 1992
and prior years' underwriting liabilities at Lloyd's as a matter of UK
law. |
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