CSR Limited hasreached a settlement with certain underwriters at Lloyd’s of London reinsuredby Equitas Limited, of litigation commenced by CSR in New Jersey in 1995. Under the settlement Lloyd’s Underwritershave agreed to pay $41 million to CSR on 24 September 2004.
Lloyd’s Underwriters were amonga number of insurers that CSR sued in the New Jersey litigation seekingindemnity for asbestos claims under policies issued to CSR from approximately1978 to 1989 together with other damages and relief.
The agreement between CSR and Lloyd’s Underwritersstipulates that if asbestos reform legislation is passed in the United Statesby 3 January 2005 and certain other conditions are met, part of the settlementwill be returned by CSR.
CSR is continuing its proceedingsagainst a number of other insurers with a hearing expected next year, subjectto certain preparatory steps being finalised.
CSR’s CEO and Managing DirectorAlec Brennan said “We are pleased tohave reached a commercial resolution with Lloyd’s Underwriters. With thissettlement CSR is well placed to pursue thislongstanding litigation against the remaining insurers.”
The settlement of $41 millionwill be recorded as a significant item in CSR’s results for the half yearending 30 September 2004. CSR hasaccrued legal costs in respect of the litigation and anticipates further costsas the trial progresses. The net profitimpact for the half and full year will need to take into account progress inthe litigation with the remaining insurers and the overall cost of thelitigation.