Sepco Asbestos Trust Annual Reports, 2020–2025

SEPCO ended 2025 with net claimants’ equity of $19.3 million, up $244,659 from $19.1 million. Net investment gains of $926,824 and interest and dividends of $754,346, supplemented by $26,500 of retained filing fees and a $3,775 debtor travel credit, exceeded $975,552 of recognized claimant costs, $82,637 of income tax expense, and $408,597 of other operating and processing expenses. Stronger investment results supported another increase in resources, although substantially higher claimant deductions reduced that increase compared with 2024.

The narrative reports 1,599 new filings and 376 paid claims totaling $831,001, compared with $975,552 recognized in the financial statements. The report notes payment-timing differences, and accrued unpaid claimant obligations increased from $97,021 to $234,154. Investments and certificates of deposit ended the year at $18.9 million. Cash consisted of $601,779 unrestricted and $139,800 restricted for filing-fee deposits; combining those balances without distinguishing the restriction would overstate cash available for general trust purposes.

SEPCO reported year-end net claimants’ equity of $19.1 million, up $513,773 from $18.6 million. Net investment gains of $499,060, interest and dividends of $711,295, and retained filing fees of $7,000 exceeded $279,265 of recognized claimant costs and $424,317 of other operating and processing expenses. Investment gains were lower than in 2023, but claimant deductions and other expenses also declined, allowing resources to continue growing. Year-end investments and certificates of deposit were $18.2 million, and unrestricted cash was $859,509.

New filings increased sharply to 6,416, compared with 757 in 2023. The narrative reports 121 paid claims totaling $306,492 and notes that payment timing can produce differences from the audited statements. Accrued claimant obligations increased to $97,021, while restricted filing-fee deposits rose to $133,950. Those restricted deposits are associated with refundable claim-filing fees and should be distinguished from unrestricted cash available for general trust purposes.

SEPCO ended 2023 with net claimants’ equity of $18.6 million, up $687,908 from $17.9 million. Net investment gains of $864,740 and interest and dividends of $701,817, together with $13,850 of retained filing fees, exceeded $447,279 of recognized claimant costs and $445,220 of other operating and processing expenses. Positive investment results reversed part of the prior year’s decline. Marketable investments and certificates of deposit rose to $18.1 million, while unrestricted cash declined to $496,543.

The narrative reports 757 new filings and 257 paid claims totaling $662,059.82. That payment figure differs from the claimant deduction in the financial statements; the report expressly notes timing differences between its claims information and audited statements. Accrued unpaid claimant obligations fell from $331,622 to $83,961. Restricted filing-fee deposits were $39,850. The improvement in equity therefore coexisted with cash distributions and a reduction in previously recognized unpaid claims.

SEPCO reported year-end net claimants’ equity of $17.9 million, down $2.9 million from $20.8 million. Net investment losses of $2.8 million were the main driver, alongside $764,969 of recognized claimant costs and approximately $348,606 of other operating and processing expenses. Interest and dividends of $720,963, a $173,676 tax benefit, $18,100 of retained filing fees, and an $85,231 gain on liquidation of the SEPCO Corporation investment provided partial offsets. The corporation’s dissolution generated $1.19 million of cash, but only the $85,231 excess over its carrying value was a new gain.

The trust received 862 filings and reported 427 paid claims totaling $1,315,240.15. Those cash distributions exceeded the current-year claimant deduction as accrued payments fell from $881,893 to $331,622. Year-end marketable investments and certificates of deposit were $16.5 million, with unrestricted cash of $1.64 million and restricted deposits of $40,450. The year’s decline reflects investment losses as well as claims and operating costs, rather than cash payments alone.

SEPCO ended 2021 with net claimants’ equity of $20.8 million, up $210,758 from $20.6 million. Interest and dividends of $912,121 and net investment gains of $165,110 were supplemented by a $700,000 upward adjustment to the value of SEPCO Corporation stock and $1,700 of retained filing fees. Deductions included $881,893 of recognized claimant obligations, $173,676 of income tax expense, and approximately $512,604 of other operating and processing costs. The stock revaluation was an accounting gain rather than a new cash contribution and was important to the year’s increase in equity.

The narrative reports 1,641 new filings and no cash payments to claimants during 2021. This is consistent with the $881,893 shown as accrued claimant payments at year-end: the financial statements recognized unpaid obligations rather than cash distributions. Marketable investments and certificates of deposit were $20.3 million, while unrestricted cash was $355,588 and restricted filing-fee deposits were $54,900. The 2021 statements were audited; their 2020 comparative figures came from the earlier compiled statements.

SEPCO’s initial report covers June 8, 2020, the trust’s formation date, through December 31, 2020. It ended that period with net claimants’ equity of $20.6 million. Formation funding consisted of $19.75 million of insurance settlements, $259,547 of residual qualified-settlement-fund cash, and SEPCO Corporation stock initially valued at $400,000. A further $100,000 corporate distribution, $485,203 of net investment gains, and $216,000 of interest and dividends added to resources, while operating and setup costs totaled $624,851. Legal fees of $340,723 were the largest expense.

The trust began accepting claims on December 7, 2020, with an initial payment percentage of 10%; no claims were paid during the reporting period. Year-end investments were $19.0 million, alongside $1.14 million of unrestricted cash and $20,950 of restricted filing-fee deposits. The increase in equity primarily reflects formation funding, not recurring earnings. These initial financial statements were compiled, not audited or reviewed, and the accountant provided no assurance on them.