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| Hanson slashed the costs of its US asbestos-related damage claims British building materials company Hanson Plc announces that one of its US subsidiaries, responsible for approximately 20% of the group’s present asbestos costs, has reached a settlement with its insurers. The settlement is effective from January 1, 2006 and resolves a number of issues relating to historic insurance policies which were issued prior to the mid 1980s and which provide insurance cover for a range of claims, including those relating to asbestos. Under the settlement, the subsidiary will pay the first US$35 million (approximately £20 million) of its future asbestos costs. Hanson estimates that this will be paid over approximately three years. Thereafter, the subsidiary’s asbestos costs will be paid in full by the insurance carriers up to agreed, and undisclosed, limits. These limits, assuming they are not used for non-asbestos claims, are expected to provide asbestos insurance cover for this subsidiary well beyond 2020. Hanson has previously advised that the group’s total annual cost of asbestos, before tax, is estimated to average approximately $60 million per annum (approximately £34 million, or £21 million after tax) over the next eight years. Based on the above estimates, this settlement would reduce the net cost by 20% to $48 million pa, after 2008. write your comments about the article :: © 2006 Construction News :: home page |