Equitas is a group of companies that was formed in 1995 to assume by way of reinsurance the vast and crippling liabilities that had accumulated in the syndicates at Lloyd's of London on insurance policies written on the 1992 and all prior years of account.
In the late 1980s and early 1990s, Lloyd's became engulfed with losses arising predominantly out of asbestosis, pollution and health hazard policies, some dating back several decades.
The proposal to set up the Equitas structure formed part of the Lloyd's "Reconstruction and Renewal" (R&R) plan that was devised under chairman Sir David Rowland and chief executive Peter Middleton.
It was accepted by 90% of the c. 34,000 Names who had underwritten policies at Lloyd's, and it became mandatory for all members to reinsure their general insurance (non-life assurance) liabilities into Equitas on business allocated to the 1992 and all prior years of account.
In March 2007 National Indemnity Company, a subsidiary of Berkshire Hathaway, entered into an agreement with Equitas to assume of all of its assets and liabilities, provide an additional $7bn of reinsurance for its whole account, and take over the staff and management of the business.