We have previously reported here on the English Commercial Court decision in Equitas v R&Q Reinsurance (Brandywine), handed down on 11 November 2009.
Equitas and R&Q have now reached an agreement in respect of the Exxon Valdez and Kuwait Airways claims in dispute in this litigation.
The terms of the settlement comprise a mutual commutation between R&Q and Equitas in respect of virtually all 1987 and post net liabilities reinsured by R&Q. Following this commutation, the solvency position of R&Q will remain in excess of the regulatory minimum, avoiding the need for any additional Group support.
As a result of the settlement, the details of which are to remain confidential, the litigation between Equitas and R&Q will be ended and the Judgment of Mr Justice Gross will not be appealed.