Travelers Settles Asbestos Lawsuits for $365 Million

posted on:
August 23, 2007

author:
Staff

The Travelers Companies, Inc. has settled all current and future asbestos-related coverage claims relating to ACandS, Inc.

Under the settlement agreement, Travelers will contribute $449 million to a trust to be established pursuant to ACandS’ plan of reorganization. In connection with the settlement, Travelers expects to cede approximately $84 million to its re-insurers, for a net settlement of $365 million.

Travelers said it will fund the settlement from its existing asbestos reserves and does not anticipate any impact on earnings as a result of the settlement.

ACandS was one of the company’s “most significant and longest-standing asbestos exposures,” according to Jay S. Fishman, chairman and chief executive officer.

The settlement is subject to a number of contingencies, including final court approval of both the settlement and a plan of reorganization for ACandS. From the time it commenced operations in January 1958, ACandS Inc. was an insulation contracting company, primarily engaged in the installation of thermal and mechanical insulation.

In later years, ACandS also performed a significant amount of asbestos abatement and other environmental remediation work. These services were performed throughout the United States.

Since 1969, ACandS has been a wholly owned subsidiary of Irex Corp., a holding company that also owns several subsidiaries that operate within the specialty contracting business. ACandS maintains its corporate headquarters in Lancaster, Pennsylvania.

Certain of the products installed by ACandS between 1958 and 1974 contained asbestos. Effective January 1, 1974, ACandS adopted the policy that it would no longer handle, furnish, or install friable asbestos-containing materials.

Source: Insurance Journal

 

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