Written question asked by John Greenway (Conservative), in the House of Commons. It was due for an answer on Friday, 10 May 1996. It was answered by Anthony Nelson (Conservative) on Friday, 10 May 1996 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: Pursuant to his Answer to the honourable Member for Bournemouth West on 29th March, Official Report, columns 762-4, what developments there have been since 29th March concerning Equitas.

Answer: Mr. John Greenway: To ask the President of the Board of Trade, pursuant to his answer to the hon. member for Bournemouth, West (Mr. Butterfill) on 29 March, Official Report, columns 762-64, what developments there have been since 29 March concerning Equitas; and if he will make a statement.[29305] Mr. Nelson: Since I announced the authorisation of Equitas on 29 March 1996, Official Report, columns 762-63, further work has taken place on the level of liabilities which Equitas will reinsure and on the assets available to cover them. As a result, the expected opening balance sheet of Equitas will be significantly stronger than originally foreseen, while the increase in provisions for 1992 and prior liabilities required will be about £1.2 billion rather than the £1.5 billion or more previously envisaged. These developments improve the prospects that Equitas will be able to pay off its liabilities in full as they fall due.

Secondary information