Goodyear to Receive $22 Million Insurance Settlement

(Akron/Tire Review) The Goodyear Tire & Rubber Co has announced it will receive $22 million as part of an insurance settlement for asbestos- and pollution-related claims it had filed. The $22 million, part of a settlement agreed upon 13 April, will be paid by Lloyd’s Underwriters and reinsured by Equitas Limited in the second quarter of 2005.

Additionally, $39 million will be placed into a trust fund by Equitas that Goodyear will be able to use for future costs involving asbestos claims. Goodyear noted that, if federal asbestos reform legislation is enacted before 3 January, 2007, Equitas may have the right to some or all of the funds remaining in the trust. If no legislation is enacted by then, the remaining funds will be paid to Goodyear.

In exchange, Goodyear agreed to a complete termination of the underwriters’ obligations under their pre-1993 policies, according to a statement issued by Goodyear.