Equitas, the Lloyd's of London runoff operation, announced today it had agreed to settle policyholder asbestos claims from Kaiser Aluminum and five other U.S.-based manufacturers for $300 million.

The agreements, according to Equitas, bring the number of major direct asbestos settlements it has concluded to 35 and involve paying more than $2.9 billion.

Included within these agreements, Equitas noted, are comprehensive settlements with Kaiser Aluminum Corp. based in Foothill Ranch, Calif. for $137 million, a $33 million agreement with Crane Company in Stamford, Conn., and a $20 million settlement with Congoleum Corp., based in Mercerville, N.J.

Names of the other firms and the arrangement for distribution of the remaining $110 million were not released because of confidentiality agreements in their settlements, said Sheevaun McCarthy, an Equitas representative.

The settlements with Kaiser Aluminum and Congoleum are subject to conditions related to the pending bankruptcies of those companies, Equitas said, adding that if the conditions are not satisfied, the settlement amounts==which have been placed in trust or escrow==will be repaid to Equitas.

Crane announced last month that under its agreement, $1.5 million will be paid to it 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 on Jan. 3, 2007 if no federal asbestos legislation is enacted by that date.

Crane said if federal asbestos reform is enacted before Jan. 3, 2007, funds then remaining in escrow would be paid to Equitas, subject to a payment of an additional $1.5 million 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.

The settlements resolve some of the largest remaining direct liabilities facing Equitas, the insurer said.

"We continue to seek comprehensive settlements and are currently in negotiations with other major policyholders," said Glenn Brace, Equitas' claims director. "We are hopeful that these negotiations will result in further agreements in the coming months."

Equitas was established to reinsure and run off 1992 and prior-year non-life liabilities of individual syndicates and their backers, known as "Names," doing business via the Lloyd's market.

Equitas said it has paid more asbestos claims than any other insurance entity in the world, totaling over $7 billion since it began in 1996. Among the largest was a $575 million settlement with Halliburton last year.

Kaiser fabricates aluminum products, while Crane Co is a diversified manufacturer of highly engineered products and Congoleum produces resilient sheet and tile floor coverings.

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Equitas Settles 6 Asbestos Claims For $300 Million

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