The Hartford has entered a brand new agreement-in-principle over the Boy Scouts of America (BAS) chapter, which replaces the insurer’s earlier settlement deal.
Based on the insurer this new agreement-in-principle now consists of the BSA, its native councils, and the representatives of a “majority” of the sexual abuse claimants. Beforehand, The Hartford proposed paying $650 million (earlier than tax) for sexual abuse claims in opposition to the BSA, however that settlement made no point out of paying abuse claimants or BSA’s native councils.
Nevertheless, as a part of the brand new agreement-in-principle, The Hartford can pay $787 million, earlier than tax, for claims related to insurance policies it had issued to the BSA within the Nineteen Seventies. In alternate for the cost, the insurer expects BSA and its native councils to completely launch The Hartford from any obligation below insurance policies it issued.
The Hartford additionally famous in a launch that the representatives for the claimants becoming a member of the agreement-in-principle will assist a plan of reorganization which contains the settlement.
The agreement-in-principle was reached in reference to BSA’s Chapter 11 chapter; it should turn into a remaining settlement upon the prevalence of sure circumstances, The Hartford stated. It’s anticipated to obtain court docket approval someday in “late 2021.”
Additionally in an organization launch, The Hartford introduced that it expects to report a cost in opposition to earnings of roughly $137 million, earlier than tax, within the third quarter of 2021.