Kaiser Gypsum Asbestos Trust Annual Reports, 2021–2025

Kaiser Gypsum’s trust reported $63.7 million in year-end net claimants’ equity for 2025, up $3.6 million from $60.1 million. Investment-related additions totaled $5.4 million before advisory fees, comprising $2.6 million in interest and dividends, $20,000 in realized losses and $2.8 million in unrealized gains. Total deductions were $1.8 million, including $209,760 in claims expense, $524,000 in federal income tax expense and a $27,729 reversal of insurance recoveries. Investment, administrative and professional costs accounted for approximately $1.0 million of the remaining deductions. Positive investment results continued to exceed claims and expenses.

The report states that the payment percentage remained 55.2% during 2025 and that a reassessment was ongoing at year-end, with an adjustment anticipated in 2026. Its claims narrative repeats the 2024 annual intake and payment figures, while its cumulative figures and listed claim statuses do not fully reconcile. Those annual counts should therefore be treated as unresolved rather than used to measure year-over-year claim activity; the $209,760 figure above is the audited claims expense, not a claim count or a statement of cash paid.

Kaiser Gypsum’s trust ended 2024 with $60.1 million in net claimants’ equity, an increase of $3.1 million from $57.0 million. Investment-related additions totaled $4.7 million before advisory fees, comprising $2.5 million in interest and dividends, $165,000 in realized losses and $2.4 million in unrealized gains. Insurance recoveries added approximately $30,000. Total deductions were $1.6 million, including $248,400 in claims expense, $100,000 in federal income tax expense and approximately $1.25 million in investment, administrative and professional costs.

The payment percentage remained 55.2%. The claims narrative reports 194 claims added to the processing queue and 85 claims paid for $234,600 during the year, with no uninsured claims filed. Its reported payments differ from the audited claims expense; the report cautions that timing, refunded claims and other adjustments can produce differences between the narrative and financial statements. Investment results exceeded the year’s claims and expenses, supporting continued growth in equity as claim payment activity increased.

Kaiser Gypsum’s trust reported $57.0 million in year-end net claimants’ equity for 2023, up $2.2 million from $54.8 million. Interest and dividends of $2.4 million, realized investment losses of $2.5 million and unrealized gains of $3.5 million produced approximately $3.4 million in investment-related additions before advisory fees. The statements also recorded $68,601 in insurance-related funding. Total deductions were $1.3 million, including $22,080 in claims expense. Collection of the $1.0 million payment note in August provided cash but converted an existing receivable rather than creating new income.

The initial payment percentage was established at 55.2%, and the trust began paying claims during 2023. The claims narrative reports eight insured claims paid for $22,080 and 208 claims added to the processing queue during the year. It also identifies 502 insured claims in the queue and 474 incomplete draft claims at year-end, with no uninsured claims filed. Investment gains and limited initial claim distributions allowed equity to grow as the claims program became operational.

Kaiser Gypsum’s trust ended 2022 with $54.8 million in net claimants’ equity, an increase of $4.8 million from $50.0 million. A $12.0 million payment from resolution of the Phase I Claims more than offset weak investment results and operating costs. Interest and dividends of $1.7 million were outweighed by $3.6 million in realized losses and $3.9 million in unrealized losses. Total deductions were $1.4 million, including approximately $697,000 for general and litigation/insurance counsel and $133,000 in claims processing and consulting fees.

The trust began accepting claims on October 10, 2022. By year-end, 288 insured claims had entered the processing queue, with another 434 submissions still incomplete; no uninsured claims had been filed. Claim payments had not begun because consent to the proposed initial payment percentage remained pending. The report states that the Trust Advisory Committee and Future Claimants’ Representative provided their consent in early 2023. Thus, the increase in equity during 2022 was driven by additional funding, while the claims program remained in its initial implementation stage.

Kaiser Gypsum’s first annual report covers August 12, 2021, the trust’s formation date, through December 31, 2021. It ended that initial period with $50.1 million in total assets and $50.0 million in net claimants’ equity. Initial funding totaled $50.3 million, consisting of $49.3 million in cash and a $1.0 million payment note receivable. Interest, dividends and investment gains added approximately $543,000, while investment, administrative and professional expenses totaled $884,000, including approximately $602,000 for the trust’s general and litigation/insurance counsel.

The trust had not begun accepting or processing asbestos claims by year-end, and its initial payment percentage had not yet been established. Activity centered on building the claims, investment and administrative infrastructure rather than making claimant distributions. The report also disclosed a subsequent $12.0 million payment from resolution of the Phase I Claims in February 2022; that funding belongs to the following reporting year.