According to the settlement agreement, Travelers will contribute $449 million to a trust to be established pursuant to ACandS’ plan of reorganization.
Travelers stated that it expects to cede about $84 million to its reinsurers, for a net settlement of $365 million. “Travelers will fund the settlement from its existing asbestos reserves and does not anticipate any impact on earnings as a result of the settlement,” the company said in a statement.
Travelers also said the settlement “is subject to a number of contingencies, including final court approval of both the settlement and a plan of reorganization for ACandS.”