ABB Lummus Asbestos Trust Annual Reports, 2010–2025

ABB Lummus’s trust ended 2025 with $15.0 million in net assets available for payment of claims, a modest increase of $88,000 from $14.9 million. Investment additions of $1.15 million included $446,000 in interest and dividends, $528,000 in realized gains and $172,000 in unrealized gains. Those additions exceeded $492,774 in claim settlement expense and $564,837 in operating and claims processing expenses. Lower settlement expense and stronger realized gains reversed the prior year’s decline in net assets.

The payment percentage remained 9.5%. The operational report records 4,964 claims received and 985 paid for $443,947, with 66 liquidated claims still in the payment queue. The financial note separately describes $438,974 paid and $53,800 accrued within the $492,774 settlement expense; these figures have different timing and accounting contexts from the operational payment total. Although net assets increased, operating activities used $472,000 in cash, and cash and cash equivalents ended the year at approximately $99,000.

ABB Lummus’s trust reported $14.9 million in year-end net assets available for payment of claims in 2024, down $450,000 from $15.3 million. Investment additions totaled $907,000, including $480,000 in interest and dividends, $84,000 in realized gains and $343,000 in unrealized gains. The statements recorded $781,365 in claim settlement expense and $575,527 in operating and claims processing expenses, exceeding investment additions.

The payment percentage decreased to 9.5% effective January 1. The operational report records 4,156 claims received and 3,830 paid for $1,585,142, with 13 liquidated claims remaining in the payment queue. These cash payments substantially exceeded current-year settlement expense as the prior year’s unpaid settlements were paid: claims payable declined from $808,656 to $4,973. That release of the backlog helps explain the sharp increase in payments compared with 2023 without implying a similar increase in new settlement expense.

ABB Lummus’s trust ended 2023 with $15.3 million in net assets available for payment of claims, down $336,000 from $15.7 million. Investment additions rebounded to $1.19 million, including $432,000 in interest and dividends, $86,000 in realized gains and $673,000 in unrealized gains. Operating and claims processing expenses were $620,000. Claims expense of $907,162 comprised $98,506 reported as paid in the financial note and $808,656 accrued for settled but unpaid claims, so it should not be read as the year’s cash distributions.

The operational report records 4,677 claims received and 157 paid for $98,505, with 1,928 liquidated claims remaining in the payment queue. It also notes that neither claims nor operating expenses were paid during the trustee vacancy between February and May. The payment percentage was 11.7% during 2023; following a review, it decreased to 9.5% effective January 1, 2024. The unpaid settlements and interruption in administration are important context for the unusually low cash payments.

ABB Lummus’s trust reported $15.7 million in year-end net assets available for payment of claims for 2022, a decrease of $2.25 million from $17.9 million. Realized investment losses of $341,000 and unrealized losses of $1.02 million outweighed interest and dividends of $279,000, producing a net investment loss of $1.08 million. The audited statements also recorded $778,000 in claim payments and $388,000 in operating and claims processing expenses.

The payment percentage remained 11.7%. The operational report identifies 1,420 claims paid for $778,617, compared with $777,677 in the audited statements. Although claim payments and operating costs were lower than in 2021, investment losses caused a substantially larger reduction in assets.

ABB Lummus’s trust reported $18.6 million in year-end net assets available for payment of claims in 2020, down $941,000 from $19.6 million. Investment additions fell to $760,000, comprising $385,000 in interest and dividends, a $10,000 realized loss and $385,000 in unrealized gains. The audited statements recorded $1.13 million in claim payments and $569,000 in operating and claims processing expenses.

The payment percentage remained 11.7%. The operational report identifies 2,173 claims paid for $1,131,815, compared with $1,131,721 in the audited statements. Lower claims and operating costs were insufficient to offset the reduction in investment additions, producing a slightly larger decline in assets than in 2019.

ABB Lummus’s trust ended 2019 with $19.6 million in net assets available for payment of claims, down $869,000 from $20.4 million. Investment additions recovered to $1.53 million, including $454,000 in interest and dividends, $65,000 in realized gains and $1.01 million in unrealized gains. Those additions remained below $1.70 million in audited claim payments and $701,000 in operating and claims processing expenses.

The payment percentage decreased from 14.7% to 11.7% effective November 1, 2019. The operational report identifies 3,136 claims paid for $1,700,768; the audited total of $1,698,465 is lower by the $2,303 in refunds of prior supplemental payments disclosed in the report. At year-end, 391 liquidated claims remained in the payment queue. Improved investments narrowed the annual decline in assets, despite increased claim payments.

ABB Lummus’s trust reported $20.4 million in year-end net assets available for payment of claims for 2018, down $2.11 million from $22.6 million. Interest and dividends of $478,000 and realized gains of $567,000 were almost entirely offset by $1.03 million in unrealized losses, leaving only $16,000 in net additions. The audited statements recorded $1.44 million in claim payments and $680,000 in operating and claims processing expenses.

The payment percentage remained 14.7%. The operational report identifies 2,061 claims paid for $1,444,353, slightly above the audited figure of $1,443,436. Payments were lower than in 2017, which included substantial supplemental distributions, but weak investment results meant the trust still drew down assets to fund claims and administration.

ABB Lummus’s trust ended 2017 with $22.6 million in net assets available for payment of claims, a decrease of $4.0 million from $26.6 million. Investment additions totaled $1.25 million, including $544,000 in interest and dividends, $267,000 in realized gains and $435,000 in unrealized gains. Operating and claims processing expenses were $529,000, while total claim payments rose to $4.72 million.

The payment percentage was 14.7%, and approximately $2.72 million of the year’s distributions were supplemental payments associated with the increase from 10%. The operational report separately identifies 2,515 claims paid for approximately $2.0 million, excluding the supplemental distribution total. The large decline in assets therefore reflects a significant payment to previously paid claimants as well as ongoing claims activity, rather than an equivalent increase in newly paid claims.

ABB Lummus’s trust reported $26.6 million in year-end net assets available for payment of claims in 2016, down $292,000 from $26.8 million. Additions increased to $921,000, primarily from $604,000 in interest and dividends and $317,000 in unrealized investment gains. Claim payments remained near the prior-year level at $554,000, while operating and claims processing expenses increased to $659,000 from $431,000.

The financial statements report that 2016 payments used a 10% payment percentage. During the year, the trustee and claimant representatives approved an increase to 14.7%; the report also disclosed approximately $2.72 million in supplemental payments approved in January 2017 for previously paid claims. Those supplemental distributions belong to the following year. Improved investment results moderated the 2016 decline in assets despite higher operating costs.

ABB Lummus’s trust ended 2015 with $26.8 million in net assets available for payment of claims, down $737,000 from $27.6 million. Interest and dividends of $640,000 were partly offset by $13,000 in realized investment losses and $392,000 in unrealized losses, leaving only $234,000 in additions. Claim payments were $540,000 and operating and claims processing expenses were $431,000.

The trust received 2,367 claims and paid 724 claims during the year at the reported 10% payment percentage. Claim payments were substantially below the $1.68 million reported for 2014, helping reduce the annual drawdown despite weaker investment results. At year-end, 53 liquidated claims remained in the payment queue, while unused annual payment allocations carried forward into 2016.

ABB Lummus’s trust reported $28.9 million in year-end net assets available for payment of claims for 2013, down approximately $229,000 from $29.1 million. Investment additions improved to $1.45 million, including $818,000 in interest and dividends, $255,000 in realized gains and $378,000 in unrealized gains. Claim payments declined to $1.13 million from $1.87 million in 2012, and operating and claims processing expenses fell to $545,000 from $794,000.

The payment percentage remained 10%. Following a claims forecast study, the trust set the maximum annual payment at $1.81 million. Stronger investment results and lower claims and administrative costs substantially narrowed the annual decline in assets, although total deductions of $1.68 million still exceeded additions.

ABB Lummus’s trust ended 2012 with $29.1 million in net assets available for payment of claims, a decrease of $1.35 million from $30.4 million. Investment additions totaled $1.32 million, consisting of $969,000 in interest and dividends, $22,000 in realized gains and $326,000 in unrealized gains. Claim payments fell to $1.87 million from $4.44 million in 2011, while operating and claims processing expenses were broadly stable at $794,000.

The report identifies a 10% payment percentage and a $5.0 million maximum annual payment for 2012. Actual claim payments were well below that ceiling, but still exceeded investment additions before operating costs. The lower payout volume narrowed the annual decline in assets, although the trust continued drawing on accumulated resources to fund distributions and administration.

ABB Lummus’s trust reported $30.4 million in year-end net assets available for payment of claims in 2011, down $3.86 million from $34.3 million. Investment additions totaled $1.36 million, including $959,000 in interest and dividends and $404,000 in realized and unrealized gains. Claim payments of $4.44 million and operating and claims processing expenses of $785,000 substantially exceeded those additions.

Claims processing and payment resumed after the 2010 suspension. Effective June 13, 2011, claims not already in the payment queue became subject to a 10% payment percentage. Claims already in the queue were treated differently: because releases had been executed on the premise of payment at 100%, the trust agreed to pay them at 20% as an accord and satisfaction. These transitional arrangements are important context for the resumption of distributions and should not be reduced to a single rate applied uniformly to all 2011 payments.

ABB Lummus’s trust ended 2010 with $34.3 million in net assets available for payment of claims, an increase of $645,000 from $33.7 million. Interest and dividends of $904,000, realized gains of $13,000 and unrealized gains of $239,000 produced $1.16 million in additions. Operating and claims processing expenses were $511,000, and no claim settlement payments were recorded, compared with approximately $5.0 million in 2009.

The trust received 25,366 claims during 2010. It suspended claims processing in August while reviewing the payment percentage after experiencing more claims with higher values than anticipated. In December, it announced that claims in the payment queue would not be paid that year. The prior payment percentage was 100%, but it was under review and no maximum annual payment was set for 2010. The increase in assets therefore needs to be understood alongside the interruption in claimant payments.