The Travelers Companies Inc. is an insurance company that insured an asbestos contracting company called ACandS, Inc. Many asbestos victims, including persons with mesothelioma, brought claims against ACandS, which resulted in its filing a Chapter 11 bankruptcy. Travelers has proposed a settlement to resolve all current and future asbestos-related coverage claims against Travelers relating to ACandS.
Under the settlement agreement, Travelers will contribute $449 million to a trust to be established pursuant to ACandS' plan of reorganization. In connection with the settlement, Travelers expects to receive approximately $84 million from its reinsurers, for a net cost of $365 million to Travelers.
The settlement is subject to a number of contingencies, including final court approval of both the settlement and a plan of reorganization for ACandS.