Two insurers reach agreement on WTC pact

Two more insurance companies have reached a deal that paves the way for them to pay claims stemming from the Sept. 11 attacks, sources say.

The Port Authority, which owns the site, stands to receive $130 million from Gulf Insurance Co. and $187 million from Travelers Indemnity Co.

Two more insurance companies have reached a deal that paves the way for them to pay claims stemming from the Sept. 11 attacks, sources said in a report by Crain's New York Business, a sister publication of Business Insurance.

The Port Authority of New York and New Jersey, which owns the site, stands to receive $130 million from Gulf Insurance Co. and $187 million from Travelers Indemnity Co. to help pay for construction at the World Trade Center site.

Travelers and Gulf have agreed that the policy would remain valid under the plan in which Mr. Silverstein would transfer some site development rights to the Port Authority.

The agency and World Trade Center developer Larry Silverstein sued the two insurers and five others in June, worried that the firms would refuse to pay the authority because Mr. Silverstein held the policy.

Agreements have been reached with all but Allianz Insurance Co., which owes $552 million, and Royal Indemnity Co., which owes $252 million.

Mr. Silverstein has already been awarded $4.6 billion in insurance to pay rent for rebuilding rights at ground zero and to build the 1,776-foot Freedom Tower.