CSR Limited has reached a settlement of insurance litigation commenced in New Jersey in 1995 with a groupof 48 Australian, United Kingdom and European insurers.Under the terms of the settlement each of thesettling insurers is obliged to pay its share of a settlement totallingapproximately A$103.3 million on or before 10 June 2006.
The insurers were among a number of insurers sued by CSR in the New Jersey litigation seeking indemnity for USasbestos claims under policies issued to CSR from approximately 1978 to 1989together with other damages and relief.
CSR is continuing the action against those insurers that are yet to settle.These include ACE Insurance Limited and certain of its affiliates, whichtogether were the primary and excess insurers of CSR and the lead insurer onmany of the policies at issue in the proceedings.
CSR’s CEO and Managing Director Alec Brennan said: “We are pleased to have reached a commercial resolution withthese insurers. Since commencing this litigation in 1995 we have achievedsettlements with 55 insurers and, while litigation is inherently uncertain, weare confident of our litigation position against the ACE defendants.”
The settlement net of litigation costs is approximately $93 million and will be recorded as asignificant item in CSR’s results for the year ending 31 March 2006.