Exposure to claims for damage caused by asbestos, has forced Equitas the unlisted reinsurance viehicle to increase its provisions. Gross asbestos reserves increased by £296m. The deadly chemical is still causing massive problems for insurers around the world as they try to minimise risk.

However Equitas are keen to show that they have agreements in place to settle three of its largest direct exposures and the largest reinsurance exposure.

Overall Equitas suffered a fall in rhe accumulated surplus to £460m. The solvency ratio increased though to 9.8%. The solvency ratio is the accumulated surplus over the net claims outstanding.

Equitas was formed to assume the liabilities faced by the Lloyds of London Insurance market.