LONDON-Although Equitas Ltd. says asbestos-related claims continue to be the "most critical issue" it faces, the reinsurer says its asbestos reserves are adequate and that it is seeking to limit its exposure to claims from unimpaired asbestosis claimants.

Equitas, the company set up to reinsure and run off Lloyd's of London's pre-1993 long-tail liabilities, discussed its most recent financial results at a meeting for names on Friday.

Finance Director Jane Barker said Equitas' reserves for asbestos claims remained steady at £8.0 billion ($12.49 billion) during the fiscal year ending March 31, 2002. Gross claims outstanding stood at £7.76 billion ($12.11 billion) as of March 31, compared with £8.93 billion ($13.94 billion) a year previously.

Scott Moser, claims director, told names reinsured by Equitas that while asbestos claims worldwide continue to rise, a great proportion of these claims are filed by claimants who suffer no physical impairment from their asbestos exposure.

Glenn Brace, head of asbestos, pollution and health claims at Equitas, added that Equitas' introduction last year of tougher claims documentation requirements (BI, Sept. 10, 2001), is helping to keep its exposure from increasing dramatically. Under these documentation requirements, policyholders that submit asbestos claims to London market insurers must provide evidence of asbestos-related illness or injury caused by the policyholder's products or premises.

"So far, we've been encouraged by our experience" with the documentation requirements, Mr. Brace said. "There's evidence that they are beginning to change at least some defendants' willingness to settle unimpaired claims and some claimants' lawyers' willingness to press such cases."

Michael Crall, chief executive officer of Equitas, said the company continues to monitor potential new sources of claims for the Lloyd's reinsurer, such as cell phone radiation, toxic mold, tobacco and slavery reparations. So far, he said, none poses a material threat to Equitas.