Equitas Pays $3.23 Billion in First Quarter Claims

British reinsurer and run-off vehicle Equitas said today it paid claims totaling $3.23 billion in the first quarter of 2000, a decrease of $100,000 for the same period last year.

Equitas was established in 1996 as part of Lloyd’s of London’s Reconstruction and Renewal Program to reinsure and run off the company’s 1992 non-life liabilities.

Reinsurers paid $1.34 billion of that total, compared with $1.43 billion last year.

In its press release, Equitas says it has significantly increased its reserved for future asbestos claims payments, based on an increase in new direct asbestos claims filings seen this year. After-tax surplus rose to $1.177 billion from $1.158 billion last year.

“We continue to track issues which could lead to new claims, including tobacco liability, though we continue to believe that tobacco claims will not create a significant liability for Equitas,” said Chief Executive Michael Crall in a statement. “Furthermore, we have no identified any previously unknown health hazard which we believe could create a material liability.”