It will take four decades for Equitas, the vehicle formed to reinsure the 1992 and prior years of Lloyd's of London, to run out of business.

With a staff of 500 covering 745 syndicate years, Equitas' opening balance sheet assets will be around $19.7 billion.

Investment management will be a key function of Equitas, CEO Michael Crall said.

Because of the length of Equitas' life, it will be able to make long-term investments. Equitas is "looking at a couple hundred basis points better return'' compared to historical Lloyd's syndicate returns, he said.

Equitas will "decrease in size rapidly over the first three or four years.'' Asbestos and other long-tail business will be managed by Equitas. Short-tail and specialty claims will be outsourced.

DOUG ASHBURY