Officials at Equitas Ltd., London, said today they will hire up to 10 money managers to invest 13.5 billion ($20.5 billion) in assets to pay pre-1993 outstanding liabilities from Lloyd's of London for asbestos, on-shore pollution and other claims.
Previous estimates had put the asset pool at 16 billion, but 2.5 billion in claims have been paid during the past three months. Assets are expected to be transferred from insurance syndicates by Aug. 31.
Lloyd's has formed Equitas as a reinsurance company, spinning off the pre-1993 liabilities to save the insurance market from potential bankruptcy. Equitas will invest in a combination of stocks, bonds and cash, adopting a longer-term strategy than the one-year syndicates that now invest the assets. It also will be better able to match its currency liabilities better, explained Jane Barker, finance director.
She added Equitas plans to hire staff to oversee the investment managers.