Crane Co, a manufacturer of engineered industrial products, announced that it has entered into an agreement to settle its insurance coverage claims for asbestos and other liabilities against underwriters at Lloyd's reinsured by Equitas for a total payment of $33m.
Under the agreement, $1.5m will be paid to Crane Co in the third quarter of this year. The balance will be placed into an escrow account for the payment of future asbestos claims and funds remaining in the escrow will be paid to Crane Co. on 3 January 2007 if no federal asbestos legislation is enacted by that date. If federal asbestos reform is enacted before 3 January 2007, funds then remaining in the escrow would be paid to Equitas, subject to a payment of an additional $1.5m to Crane Co and a hold-back of certain funds in the escrow for the payment of asbestos claims during the year following enactment of asbestos legislation.
Crane Co's settlement resolves all its claims against pre-1993 policies issued to Crane Co by certain underwriters at Lloyd's of London and reinsured by Equitas.
