Crane Co., a Stamford, Conn. manufacturer of engineered industrial products, has agreed to settle its insurance coverage claims for asbestos and other liabilities against underwriters at Lloyd’s of London reinsured by Equitas Limited for a total payment of $33 million.
Under the agreement, $1.5 million 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 Jan. 3, 2007 if no federal asbestos legislation is enacted by that date. If federal asbestos reform is enacted before Jan. 3, 2007, funds then remaining in the 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.
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. While this settlement resolves Crain’s claims against a significant insurer, negotiations are ongoing with Crane Co.’s other liability insurers.
Crane Co.has five business segments: Aerospace & Electronics, Fluid Handling, Engineered Materials, Merchandising Systems and Controls. Crane has approximately 10,500 employees in North America, South America, Europe, Asia and Australia.
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