The Hartford enters agreement-in-principle with Boy Scouts of America, abuse claimants
It includes the youth organization’s local councils and representatives of the majority of the claimants
The Hartford enters agreement-in-principle with Boy Scouts of America, abuse claimants
INSURANCE NEWS
By Lyle Adriano
Sep 15, 2021

The Hartford has entered a new agreement-in-principle over the Boy Scouts of America (BAS) bankruptcy, which replaces the insurer’s previous settlement deal.

According to the insurer this new agreement-in-principle now includes the BSA, its local councils, and the representatives of a “majority” of the sexual abuse claimants. Previously, The Hartford proposed paying $650 million (before tax) for sexual abuse claims against the BSA, but that agreement made no mention of paying abuse claimants or BSA’s local councils.

Read more: The Hartford enters $650 million settlement agreement with the Boy Scouts of America

However, as part of the new agreement-in-principle, The Hartford will pay $787 million, before tax, for claims associated with policies it had issued to the BSA in the 1970s. In exchange for the payment, the insurer expects BSA and its local councils to fully release The Hartford from any obligation under policies it issued.

The Hartford also noted in a release that the representatives for the claimants joining the agreement-in-principle will support a plan of reorganization which incorporates the settlement.

The agreement-in-principle was reached in connection with BSA’s Chapter 11 bankruptcy; it will become a final settlement upon the occurrence of certain conditions, The Hartford said. It is expected to receive court approval sometime in “late 2021.”

Also in a company release, The Hartford announced that it expects to record a charge against earnings of approximately $137 million, before tax, in the third quarter of 2021.

Related Stories
Free newsletter

We'll keep you up-to-date with the latest breaking news, cutting edge opinion, and expert analysis affecting both your business and the industry as whole.

Free newsletter

Our daily newsletter is FREE and keeps you up - to - date with the world of Insurance. Please complete the form below and click on subscribe for daily newsletters from IB US.