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The Hartford to pay $787 million in Boy Scouts sex abuse insurance deal

By Maria Chutchian (Reuters) - Insurance company Hartford Financial Services Group (NYSE:HIG) Inc said on Tuesday it has entered into a new agreement with the Boy Scouts of...
The Hartford to pay $787 million in Boy Scouts sex abuse insurance deal © Reuters. FILE PHOTO: The Cushman Watt Scout Center, headquarters of the Boy Scouts of America for the Los Angeles Area Council, is pictured in Los Angeles, California October 18, 2012. REUTERS/Fred Prouser

By Maria Chutchian

(Reuters) - Insurance company Hartford Financial Services Group (NYSE:HIG) Inc said on Tuesday it has entered into a new agreement with the Boy Scouts of America and a majority of sexual abuse claimants to pay $787 million, before tax, in settlements.

In exchange for The Hartford's payment, the Boy Scouts and its local councils will fully release the company from any obligation under policies that were mostly issued in the 1970s, the insurer said. Hartford expects to take a $137 million pretax charge in the third quarter for the higher payout.

The Hartford's settlement is subject to approval by U.S. Bankruptcy Judge Laurie Selber Silverstein, who oversees the Boy Scouts' bankruptcy.

Founded in 1910, the Boy Scouts filed for Chapter 11 bankruptcy protection in February 2020 after being hit with a flood of sexual abuse lawsuits. The Boy Scouts face 82,500 claims of sexual abuse in the bankruptcy.

Tuesday's agreement replaces the Boy Scouts’ prior deal with The Hartford, under which the insurer said it would contribute $650 million.

Last month, Silverstein approved the Boy Scouts’ $850 million settlement with representatives of around 70,000 abuse claimants. That deal is backed by 250 local councils. The organization has not yet announced any deal with its other major insurer, Century Indemnity Co.

The Boy Scouts have said they are committed to fulfilling their “social and moral responsibility to equitably compensate survivors.”

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18-09-2021 02:00:47 (UTC+7)

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    EUR/USD 1.1730 ↑ Buy  
    GBP/USD 1.3740 ↑ Sell  
    USD/JPY 109.93 ↑ Sell  
    AUD/USD 0.7273 Sell  
    USD/CAD 1.2745 Neutral  
    EUR/JPY 128.93 ↑ Sell  
    EUR/CHF 1.0936 ↑ Buy  
    Gold 1,752.65 Buy  
    Silver 22.418 ↑ Buy  
    Copper 4.2470 ↑ Sell  
    Crude Oil WTI 72.08 ↑ Buy  
    Brent Oil 75.45 ↑ Buy  
    Natural Gas 5.050 ↑ Sell  
    US Coffee C 186.75 Buy  
    Euro Stoxx 50 4,130.84 ↑ Buy  
    S&P 500 4,435.40 ↑ Buy  
    DAX 15,490.17 ↑ Buy  
    FTSE 100 6,963.64 ↑ Buy  
    Hang Seng 24,920.76 ↑ Buy  
    Small Cap 2000 2,226.75 ↑ Sell  
    IBEX 35 8,760.90 ↑ Sell  
    BASF 63.085 ↑ Sell  
    Bayer 45.07 ↑ Sell  
    Allianz 190.23 ↑ Sell  
    Adidas 281.60 ↑ Sell  
    Lufthansa 8.210 Neutral  
    Siemens AG 148.76 ↑ Sell  
    Deutsche Bank AG 11.080 ↑ Sell  
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