Ad blocker interference detected!
Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers
Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.
From the Associated Press
From the Los Angeles Times, July 7, 2007, Copyright 2006 Los Angeles Times
ST. PAUL, MINN. — Travelers Cos. said Friday that it would settle one of its largest asbestos cases for $449 million.
The St. Paul-based commercial insurer settled the case with ACandS Inc., which installed insulation with asbestos from 1958 to 1974 and was insured by Travelers.
Travelers said it would pay $365 million of the settlement and reinsurers would cover $84 million.
Travelers said its portion would come from its asbestos reserves without hurting earnings.
The settlement comes after a federal appeals court reinstated an ACandS lawsuit in January 2006 over what limits apply to its coverage.
The lawsuit claimed that Travelers was liable for 45% of the $2.8 billion that Lancaster, Pa.-based ACandS paid to settle asbestos-related claims.
Travelers had $4.47 billion set aside for asbestos and environmental claims at the end of 2006.
"ACandS has been one of our most significant and longest-standing asbestos exposures," said Jay S. Fishman, chief executive of Travelers.
"Eliminating the uncertainty inherent in this litigation makes this a very good outcome for our company and our shareholders."
Travelers shares rose 10 cents to $54.52 on Friday.