Hartford settles with Boy Scouts on sexual abuse claims
The settlement will also free the insurer from any obligation stemming from policies issued to Boy Scouts of America or its local councils.
The Hartford and Boy Scouts of America (BSA) have entered into a settlement agreement that will see the former pay $650 million, before tax, for sexual abuse claims associated with policies predominately written in the 1970s, the Connecticut-based insurer reported.
In exchange for the payment, The Hartford will be freed from future obligations under policies issued to BSA as well as its local councils. The youth organization faces more than 92,000 allegations of abuse.
The deal is connected to BSA’s Chapter 11 bankruptcy and will commence once certain conditions are met. These include confirmation of the organization’s global resolution plan, executed releases from local councils and approval from abuse claimants, according to The Hartford. It is also subject to court approval, which is expected to come in the third quarter.
“The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting. We are outraged that there have been times when individuals took advantage of our programs to harm innocent children,” Roger Mosby, BSA president and CEO, said in a release. “While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process — with the proposed trust structure — will provide equitable compensation to all victims while maintaining the BSA’s important mission.”
The insurer reported first-quarter 2021 pre-tax results are estimated to see an “unfavorable prior year development” of approximately $225 million. This projection includes a charge to increase reserves for the BSA settlement.
Further, The Hartford expects current accident-year catastrophe losses, net of reinsurance, to reach an estimated $214 million, which includes approximately $176 million stemming from the winter storms in Texas. Both figures are projected on a pre-tax basis.
Related: