Chubb settles Boy Scouts sexual abuse claims for $800M
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Chubb Ltd. will pay $800 million to the Boy Scouts of America to settle sexual abuse-related insurance claims filed by the youth organization, the insurer said in a statement Monday.
Chubb has reached an agreement-in-principle with the Boy Scouts that will provide at “broad release” for abuse-related claims for Century Indemnity Co. and other Chubb companies, the statement said.
“The net financial impact to the company from the settlement will be substantially reduced by carried reserves and third-party reinsurance,” Chubb said.
Tens of thousands of former scouts have sued the Boy Scouts alleging they were abused while scouting.
The Boy Scouts filed for Chapter 11 bankruptcy in 2020 as part of an effort to structure compensation payments to victims of abuse. According to its filing, the Boy Scouts bought commercial general liability coverage since 1962 from multiple insurers.
Earlier this year, Hartford Financial Services Group Inc. agreed to pay $787 million to settle claims filed by the Boy Scouts.
In a statement Monday, the Boy Scouts said its proposed settlement trust for abuse victims "is now expected to exceed $2.6 billion, and we anticipate additional insurance proceeds and other settlement contributions will be added to this fund in the coming weeks."
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