Chubb unit to pay $800 million in Boy Scouts sexual-abuse compensation settlement

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The Boy Scouts of America achieved with the Century Indemnity Co. of Chubb Ltd. a $ 800 million childhood sexual abuse settlement within the youth group, potentially increasing funding for abuse victims under their Chapter 11 plan.

“The proposed survivor compensation fund is now projected to exceed $ 2.6 billion and we expect additional insurance revenue and other settlement contributions to be added to this fund in the coming weeks.”

– Boy Scouts of America

The proposed deal limits Chubbs CB, -0.65% of exposure from insurance policies it has sold to the Boy Scouts, and is backed by a coalition of law firms that represent the majority of the roughly 82,200 men who have claims related to the bankruptcy of the youth group because of previous abuse cases.

Don’t miss (May 2021): Many Scout survivors find little comfort as bankruptcy nears its end

From the archives (July 2021): Boy Scouts Reach $ 787 Deal With Primary Insurer Over Harassment; The Church of Jesus Christ of Latter-day Saints has agreed to contribute $ 250 million to the fund

The settlement with Chubb, if approved by the bankruptcy court, would increase nearly $ 1.9 billion in compensation the youth group already has from its own assets, its affiliated ward councils, Latter-day Saints Church of Jesus Christ and another large insurer, Hartford Financial Services Group Inc. HIG, -1.34%.

“The proposed survivor compensation fund is now projected to exceed $ 2.6 billion, and we expect additional insurance revenue and other settlement contributions to be added to this fund in the coming weeks,” the Boy Scouts said Monday.

The youth group is under heavy pressure to enlist the support of abuse survivors for their bankruptcy plan that would remove Scouts from court and solve their financial liability related to decades of failure to protect children from predators.

The Boy Scouts, who filed for bankruptcy last year over a growing wave of lawsuits from abuse survivors, apologized, saying the Chapter 11 plan would provide fair compensation and uphold the organization’s mission.

An expanded version of this report is available at WSJ.com.

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