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Equitas
Equitas is a group of companies that was formed in 1996 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. These liabilities were reinsured by Equitas Reinsurance Limited (ERL), which was also appointed as the run-off agent. The liabilities were then retroceded (reinsured again) to Equitas Limited, to which ERL also delegated its run-off function. Background 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. Thousands of individuals (known as "Names") who had invested in Lloyd's syndicates that wrote these long-tail liability risks, or reinsured other syndicates that had, were facing financial ruin. The proposal to set up the Equitas structure formed part of the Lloyd's "Reconstruction and Renewal" (R& ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lloyd's Of London
Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. Unlike most of its competitors in the industry, it is not an insurance company; rather, Lloyd's is a corporate body governed by the Lloyd's Act 1871 and subsequent Acts of Parliament. It operates as a partially-mutualised marketplace within which multiple financial backers, grouped in syndicates, come together to pool and spread risk. These underwriters, or "members", are a collection of both corporations and private individuals, the latter being traditionally known as "Names". The business underwritten at Lloyd's is predominantly general insurance and reinsurance, although a small number of syndicates write term life insurance. The market has its roots in marine insurance and was founded by Edward Lloyd at his coffee house on Tower Street in 1688. Today, it has a dedicated building on Lime Street which is Grade I listed. Traditionally business is tr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Asbestos And The Law
The mineral asbestos is subject to a wide range of laws and regulations that relate to its production and use, including mining, manufacturing, use and disposal. Injuries attributed to asbestos have resulted in both workers' compensation claims and injury litigation. Health problems attributed to asbestos include asbestosis, mesothelioma, lung cancer, and diffuse pleural thickening. One of the major issues relating to asbestos in civil proceedings is the latency of asbestos-related diseases. Most countries have limitation periods to bar actions that are taken long after the cause of action has lapsed. For example, in Malaysia the time period to file a tort action is six years from the time the tort occurred. Due to several asbestos-related actions, countries such as Australia have amended their laws relating to limitations to accumulate starting from time of discovery rather than time when the cause of action accrued. The first employee claims for injury from exposure to asbestos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hugh Stevenson (investment Banker)
Sir Hugh Alexander Stevenson (born 7 September 1942) is a businessman known for being a former chairman of Mercury Asset Management and Equitas. Career Stevenson began his career at law firm Linklaters and Paine before joining S.G. Warburg & Co. in 1970. He went on to become chairman of Mercury Asset Management from 1992 to 1998. Stevenson was on the board of Warburg from 1987 to 1995, at which point it was bought by SBC and its ties with Mercury Asset Management were severed. As Chairman of Mercury Asset Management, Stevenson oversaw the company’s sale to Merrill Lynch in late 1997, which saw Mercury colleagues Carol Galley and Stephen Zimmerman become co-heads of the newly created Merrill Lynch Investment Management (MLIM). Following his departure from Mercury Asset Management in 1998, Stevenson took on the chairmanship of Equitas, the company that was set up to reinsure the liabilities of over 30,000 “Names” of Lloyd’s of London insurance syndicates. He remained ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reinsurance
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. With reinsurance, the company passes on ("cedes") some part of its own insurance liabilities to the other insurance company. The company that purchases the reinsurance policy is called a "ceding company" or "cedent" or "cedant" under most arrangements. The company issuing the reinsurance policy is referred to as the "reinsurer". In the classic case, reinsurance allows insurance companies to remain solvent after major claims events, such as major disasters like hurricanes and wildfires. In addition to its basic role in risk management, reinsurance is sometimes used to reduce the ceding company's capital requirements, or for tax mitigation or other purposes. The reinsurer may be either a specialist reinsurance company, which only undertakes reinsurance business, or another insurance company. Insurance companies ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Life Assurance
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policyholder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses. Life policies are legal contracts and the terms of each contract describe the limitations of the insured events. Often, specific exclusions written into the contract limit the liability of the insurer; common examples include claims relating to suicide, fraud, war, riot, and civil commotion. Difficulties may arise where an event is not clearly defined, for example, the insured knowingly incurred a risk by consenting to an experimental me ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Net Present Value
The net present value (NPV) or net present worth (NPW) applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans, investments, payouts from insurance contracts plus many other applications. Time value of money dictates that time affects the value of cash flows. For example, a lender may offer 99 cents for the promise of receiving $1.00 a month from now, but the promise to receive that same dollar 20 years in the future would be worth much less today to that same person (lender), even if the payback in both cases was equally certain. This decrease in the current value of future cash flows is based on a chosen rate of return (or discount rate). If for example there exists ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
National Indemnity Company
National Indemnity Company is an insurance company based in Omaha, Nebraska, United States, and founded in 1940 by Jack Dabney Ringwalt. It is a subsidiary of Berkshire Hathaway, which bought the company in 1967. It is Berkshire's oldest operating subsidiary. Between September 2019 and August 2020, Berkshire Hathaway purchased more than 5% of the outstanding stock of each of the five largest Japanese general trading companies, i.e. Itochu, Mitsubishi, Mitsui is one of the largest ''keiretsu'' in Japan and one of the largest corporate groups in the world. The major companies of the group include Mitsui & Co. ( general trading company), Sumitomo Mitsui Banking Corporation, Nippon Paper Industries ..., Sumitomo, and Marubeni, through its subsidiary National Indemnity Company. These stakes were worth a total of over $6 billion as of August 2020. References External linksOfficial homepage Financial services companies established in 1940 Insurance companies of the U ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Berkshire Hathaway
Berkshire Hathaway Inc. () is an American Multinational corporation, multinational conglomerate (company), conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from which it invests the float (the retained premiums) in a broad portfolio of subsidiaries, equity positions and other securities. The company has been overseen since 1965 by its chairman and CEO Warren Buffett and (since 1978) vice chairman Charlie Munger, who are known for their advocacy of value investing principles. Under their direction, the company's book value has grown at an average rate of 20%, compared to about 10% from the S&P 500 index with dividends included over the same period, while employing large amounts of capital and minimal debt. The company's insurance brands include auto insurer GEICO and reinsurance firm General Re. Its non-insurance subsidiaries operate in diverse sectors such as confectionery, retail, Rail transport, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Novation
Novation, in contract law and business law, is the act of – # replacing an obligation to perform with another obligation; or # adding an obligation to perform; or # replacing a party to an agreement with a new party. In international law, novation is the acquisition of territory by a sovereign state through "the gradual transformation of a right ''in territorio alieno'' n foreign territoryinto full sovereignty without any formal and unequivocal instrument to that effect intervening".John P. Grant and J. Craig Barker (eds.), "Novation", in ''Perry & Grant Encyclopaedic Dictionary of International Law'', 3rd ed. (Oxford University Press, 2009). Origins in Roman law Novati, as a legal term is derived from the Roman law, in which ''novatio'' was of three kinds—substitution of a new debtor (''expromissio'', or ''delegatio''), of a new creditor (''cessio nominum vel actionum''), or of a new contract. In English law the term (though it occurs as early as Bracton) is scarcely na ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
High Court Of Justice
The High Court of Justice in London, known properly as His Majesty's High Court of Justice in England, together with the Court of Appeal of England and Wales, Court of Appeal and the Crown Court, are the Courts of England and Wales, Senior Courts of England and Wales. Its name is abbreviated as EWHC (England and Wales High Court) for legal citation purposes. The High Court deals at Court of first instance, first instance with all high value and high importance Civil law (common law), civil law (non-criminal law, criminal) cases; it also has a supervisory jurisdiction over all subordinate courts and tribunals, with a few statutory exceptions, though there are debates as to whether these exceptions are effective. The High Court consists of three divisions: the King's Bench Division, the #Chancery Division, Chancery Division and the #Family Division, Family Division. Their jurisdictions overlap in some cases, and cases started in one division may be transferred by court order to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Services And Markets Act 2000
The Financial Services and Markets Act 2000c 8 is an Act of the Parliament of the United Kingdom that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking, and the Financial Ombudsman Service to resolve disputes as a free alternative to the courts. The Act was considerably amended by the Financial Services Act 2012 and the Bank of England and Financial Services Act 2016. Contents Some of the key sections of this act are: ;Part I The Regulator * Section 1A outlines the regulatory objectives of the Financial Conduct Authority: (a) market confidence; (b) financial stability (c) public awareness; (d) the protection of consumers; and (e) the reduction of financial crime. * Section 2A establishes the Prudential Regulation Authority ;Part II Regulated And Prohibited Activities * Section 19 requires firms to be authorised to conduct regulated activities. * Section 21 makes it a criminal offence to issue a financial promotion ( ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
