Chief Executive Officer Scott Moser said the year included 18 major direct asbestos settlements, including agreements with W.R. Grace, Kaiser Aluminum and Congoleum Corp. However, Equitas has not had much success on commuting claims liabilities with U.S. insurers, he noted. "We believe commutations are good for both parties. They avoid transaction costs and often significant legal costs, avoid delay, and provide certainty for both parties," Mr. Moser said.

Mr. Stevenson said the year ending March 31 was one of mixed results. "Each of our operating divisions made a positive contribution to the balance sheet, exposures for a number of catastrophes moderated, and we successfully procured significant reimbursements for some very old claims payments," he said.

However, Mr. Stevenson noted that the failure of the U.S. Congress to establish a trust fund to settle asbestos claims could not be considered a positive development. "There were deteriorations in respect to incoming asbestos claims from U.S. insurance companies, and we needed to increase pollution reserves for the first time in several years," he said.

However, the slight negative movements in surplus and solvency margin must not be allowed to mask the volatility inherent in the book of insurance and reinsurance claims Equitas handles, Mr. Stevenson asserted.