Hartford to pay Boy Scouts $787M for abuse claims

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    Boy Scouts

    Hartford Financial Services Group Inc. said Tuesday it will pay $787 million pretax in claims under a settlement agreement with the Boy Scouts of America, its local councils and representatives of most of the organization’s sexual abuse claimants.

    The agreement will fully release the insurer from any obligation under policies it issued to the Boys Scouts of America and its local councils, the statement said.

    The Hartford expects to record a $137 million pretax charge against earnings in the third quarter based on the settlement.

    The Boy Scouts filed for Chapter 11  bankruptcy protection last year as part of an effort to structure compensation payments to victims of sexual abuse harmed while scouting. It sued Hartford in 2018 for insurance coverage for about 200 alleged abuse claims.

    The Hartford said in its statement Tuesday that the claims associated with its policies were mostly issued in the 1970s.

    Hartford said the agreement supersedes an earlier $650 million settlement with the BSA that did not include the local councils or a majority of the claimants.

    The statement said the settlement will become final with the occurrence of certain conditions, including execution of a definitive settlement agreement, and court approval is expected late this year.