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LONDON - Some 30,000 former investors in the Lloyd's of London insurance market are to share in an initial payout of £50 million ($142 million) from the sale of Equitas to Warren Buffett's Berkshire Hathaway, it was revealed yesterday.
Equitas, the rescue vehicle set up 10 years ago to save the Lloyd's insurance market from collapse, struck a deal with Buffett's company in October which will see the members of Equitas finally freed of any potential future claims.
As part of the deal, the Names who invested in Equitas are to share in two payouts, the first of which will be £50 million, and the second of which will be up to a further £80 million.
Equitas was set up in 1996 as part of a deal to prevent the Lloyd's market from collapsing following huge losses on pollution and asbestos-related claims. Most Lloyd's Names - individuals who had invested in, and previously underwritten, the Lloyd's market - agreed to collectively pay billions of pounds into a new company, Equitas, to relieve them of their liabilities.
If the deal is successfully completed, Berkshire Hathaway will take full responsibility for all future claims.
- INDEPENDENT
