1. New Perspectives on Asbestos
Presented by:
Gerard Altonji, A.M. Best Company
Raji Bhagavatula, Milliman USA
Glen Brace, Equitas
Paul Jardine, Equitas
Casualty Loss Reserve Seminar September 2001
4/30/01
Milliman USA

2. 4/30/01
Milliman USA

3. New Perspectives on Asbestos
Specter of asbestos
Expected ultimate losses
Equitas actions
Impact of bankruptcies
Rating agency issues
4/30/01
Milliman USA

4. The Specter of Asbestos
Increase in claims reported by Manville and other defendants.
Defendant pool has expanded from 300 in the mid-1980’s to 2,400 today.
Over forty asbestos-related bankruptcies to date.
Eight asbestos-related bankruptcies of otherwise profitable companies since 2000 alone
Average settlement demands have increased, especially for Mesothelioma claims
Legislative attempts have been unsuccessful so far
The court system has ceased to be effective in the fair determination of liability
The U.S. Supreme court has closed off the avenue for meaningful class action settlements
As companies file for bankruptcy, costs are being shifted to solvent parties and new defendants
4/30/01
Milliman USA