Crane Co., the Stamford, Conn.-based industrial products manufacturer, said it has settled its asbestos claims with Lloyd's underwriters reinsured by Equitas Limited for $33 million.
The company said it will be paid $1.5 million in the third quarter of this year. The balance will be placed in an escrow account for the payment of future asbestos claims on Jan. 3, 2007 if no federal asbestos legislation is enacted by that date.
If asbestos reform legislation is enacted before that date, the Crane announcement said funds remaining in the escrow account will be paid to Equitas, subject to an additional $1.5 million payment 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 said the settlement resolves all its claims against pre-1993 policies issued to Crane Co. by certain underwriters at Lloyd's and reinsured by Equitas.
The company said negotiations are ongoing with its other liability insurers.
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