Silverstein Settles TIG World Trade Center Payments

Developer Larry A. Silverstein said today his organization has reached a settlement with one of the World Trade Center insurers, TIG.

According to the announcement, under the agreement, TIG will pay Silverstein and the Port Authority $12,535,000 toward the rebuilding of the World Trade Center, which is in addition to a prior payment of $9.1 million.

The Dallas-based insurance group is a subsidiary of Fairfax Financial Holdings.

In 2004, a federal jury found that TIG and nine other insurers were liable for two insurance policy limits because the two plane attacks on the World Trade Center were separate "occurrences" under the policies.

The settlement requires TIG to pay a full second-occurrence payment of $9.1 million, plus an additional $3.435 million of prejudgment interest, which represents 90 percent of Silverstein's prejudgment interest demand.

"This agreement clearly demonstrates that we at Silverstein and our partners at the Port Authority are ready to settle our outstanding insurance claims on fair terms, as necessary, to keep the rebuilding on track and on schedule," said Mr. Silverstein.

A spokesman for Mr. Silverstein said eight insurers still have balances outstanding that total $2.14 billion, based on two jury verdicts.

Last month Mr. Silverstein and the Port Authority of New York and New Jersey filed suit in New York State Supreme Court against U.K. carrier Royal & Sun Alliance and its U.S. operations for failing to meet their obligations regarding the Sept. 11 attacks on the Twin Towers.