Two insurers have agreed to pave the way for payment to the Port Authority of New York & New Jersey totaling $317 million in claims stemming from the attacks on the World Trade Center.
Travelers Indemnity Co. owes $187 million, while Gulf Insurance Co. owes $130 million for claims based on the Sept. 11, 2001 terrorist destruction of the site. Both companies are now part of the St. Paul Travelers merged operation.
Earlier this year, the original claimant, WTC leaseholder Larry Silverstein, transferred his rights to the Port Authority to develop the first building set for construction, the Freedom Tower.
That transfer raised questions about the viability of the claims against not only Travelers Indemnity and Gulf but five other companies, who were sued jointly by Mr. Silverstein and the Port Authority to assure payment.
St. Pauls Travelers spokeswoman Marlene Ibsen said the two companies have agreed in principle to the transfer of ownership, but there are still some issues to be worked out before payment is made.
In June, Mr. Silverstein filed suit in New York State Supreme Court in Manhattan against not only Travelers and Gulf, but also Allianz Insurance Co., Royal Indemnity, Industrial Risk Insurers, Zurich America Insurance Company and Employers Insurance Company of Wausau demanding payment, insisting that the new ownership arrangements “cannot provide an excuse for any defendant to avoid its obligations.”
Agreements have been reached with all but Allianz, which owes $552 million, and Royal Indemnity, which owes $252 million.
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