Thorpe Insulation Asbestos Trust Annual Reports, 2010–2025

Thorpe Insulation’s net claimants’ equity declined by $4.1 million in 2025 to $338.8 million. Net investment income of $9.8 million and realized and unrealized gains of $21.6 million accounted for most of the additions, with a further $1.6 million deferred tax benefit. Deductions included $23.8 million in settled claims, approximately $998,000 in operating expenses, a $10.8 million current tax provision and a $1.8 million increase in outstanding claim offers. Investment additions nearly offset the year’s claims and costs.

Cash claim payments totaled $23.8 million and cash tax payments were $12.25 million. Cash, cash equivalents and investments ended the year at $364.6 million, down $5.5 million; the statement separately reports $1.3 million in net cash and investing outflows and $4.3 million in unrealized losses, partly offset by a prepaid-insurance adjustment. The Funds Received Ratio was reviewed in February 2025 and maintained at 58.6%.

Thorpe Insulation ended 2024 with $342.9 million in net claimants’ equity, a decline of $13.2 million. Net investment income of $9.6 million and realized and unrealized gains of $12.0 million provided most of the additions, alongside a $2.8 million reduction in outstanding claim offers and an $854,000 deferred tax benefit. Deductions included $30.6 million in settled claims, $1.1 million in operating expenses and a $6.6 million current tax provision. Investment additions did not fully replenish the resources used for claims and expenses.

Cash claim payments were approximately $30.6 million. Cash, cash equivalents and investments fell to $370.1 million, reflecting $14.2 million in net cash outflows and $2.3 million in unrealized losses. Realized gains outweighed unrealized losses within the positive net investment-gain figure. The report continued to describe a 58.6% Funds Received Ratio.

Thorpe Insulation’s net claimants’ equity decreased by $53.9 million in 2023 to $356.1 million. Settled claims and cash claim payments totaled $72.0 million, and outstanding claim offers increased by $5.0 million. Net investment income of $9.0 million and realized and unrealized gains of $26.5 million partly offset those obligations, while operating expenses were $1.1 million and current and deferred tax provisions totaled $11.3 million. Claims distributions substantially exceeded the year’s investment additions.

The Funds Received Ratio increased to 58.6% in April 2023, with retroactive application to eligible claims paid since inception. This is important context for the large payment total, which should not be treated solely as payments on newly resolved claims. Cash, cash equivalents and investments ended the year at $386.6 million; unrealized gains of $15.4 million softened the effect of $58.6 million in net cash outflows.

Thorpe Insulation ended 2022 with $410.0 million in net claimants’ equity, down $41.9 million. Net realized and unrealized investment losses of $48.5 million were the largest reduction, alongside $14.2 million in settled claims, $1.1 million in operating expenses and a $1.2 million increase in outstanding claim offers. Net investment income of $6.1 million and an $18.2 million deferred tax benefit partly offset those deductions. The tax benefit reduced the reported loss in equity but was not new cash funding.

Cash claim payments totaled $14.2 million. Cash, cash equivalents and investments fell to $429.7 million, with $10.0 million in net cash outflows and $49.4 million in unrealized investment losses. This distinguishes cash used for claims, costs and taxes from the substantially larger effect of market valuations on the investment portfolio.

Thorpe Insulation’s net claimants’ equity increased by $11.7 million in 2021, ending the year at $451.9 million. Net investment income of $4.8 million and realized and unrealized gains of $31.8 million supplied most of the additions; a $2.3 million reduction in outstanding claim offers also increased equity. Deductions included $13.8 million in settled claims, $1.2 million in operating expenses and $12.3 million in current and deferred tax provisions. Investment performance supported growth after claims and costs.

Cash claim payments were $13.8 million. Cash, cash equivalents and investments increased to $489.0 million, reflecting $4.6 million in reported net cash inflows and $11.0 million in unrealized gains. Unlike a year in which valuation gains alone offset cash use, both components contributed positively to the combined balance. The report continued to describe a 51.8% Funds Received Ratio.

Thorpe Insulation ended 2020 with $440.2 million in net claimants’ equity, a modest $2.0 million increase. Net investment income of $7.2 million and realized and unrealized gains of $27.1 million supported total additions of $34.4 million. Deductions included $17.7 million in settled claims, $1.2 million in operating expenses, $10.7 million in combined current and deferred tax provisions and a $2.9 million increase in outstanding claim offers. Investment results narrowly exceeded those obligations.

Cash claim payments totaled $17.7 million. The combined cash, cash-equivalent and investment balance rose to $473.4 million, despite $10.3 million in reported net cash outflows, because unrealized gains added $21.4 million. The Funds Received Ratio remained 51.8%. The equity increase therefore depended significantly on investment valuation gains while the Trust continued distributing cash to claimants.

Thorpe Insulation’s net claimants’ equity increased by $17.0 million in 2019 to $438.2 million. Net investment income of $9.3 million and realized and unrealized gains of $41.5 million were the primary additions, supplemented by a $3.0 million reduction in outstanding claim offers. Deductions included $17.4 million in settled claims, $1.9 million in operating expenses and $17.5 million in combined current and deferred tax provisions. Strong investment gains more than covered the year’s recorded claims and expenses.

Cash claim payments were $17.4 million. Cash, cash equivalents and investments increased to $462.4 million even though the cash-flow statement reported $10.2 million in net cash outflows. Unrealized gains of $37.4 million accounted for the difference, showing that the growth in invested resources was principally market-driven rather than a cash surplus from operations.

Thorpe Insulation ended 2018 with $421.2 million in net claimants’ equity, a decrease of $55.0 million. Settled claims and cash claim payments totaled $50.3 million, while net realized and unrealized investment losses were $12.3 million. Net investment income of $8.9 million and a $3.6 million deferred tax benefit partly offset those reductions. Operating expenses were $2.2 million, with a further $1.4 million current tax provision and $1.3 million increase in outstanding claim offers.

The Funds Received Ratio rose from 43.6% to 51.8% in May, with retroactive application to eligible claims paid since inception. The claims total thus reflects a year with an expanded payment percentage, not simply new claims activity. Cash, cash equivalents and investments fell to $435.2 million; net cash outflows of $29.2 million and unrealized losses of $29.6 million both contributed to that decline.

Thorpe Insulation’s net claimants’ equity increased by $11.5 million in 2017, ending the year at $476.3 million. The report records $10.7 million in investment income and $34.4 million in realized and unrealized gains. Deductions included $14.1 million in settled claims, $3.1 million in operating expenses, a $15.6 million deferred tax provision and approximately $744,000 in additional outstanding claim offers. Investment gains were the principal driver of the increase in resources.

Cash claim payments were $14.1 million, and the Funds Received Ratio remained 43.6%. Cash, cash equivalents and investments increased to $494.1 million. Of the $27.8 million increase in that combined balance, $27.4 million reflected unrealized gains, while the statement reported only about $367,000 in net cash inflows. Most of the increase therefore reflected investment valuation changes rather than additional cash generated.

Thorpe Insulation ended 2016 with $464.8 million in net claimants’ equity, down $55.6 million. Reported investment income of $10.1 million and realized and unrealized gains of $16.4 million provided almost all of the $26.5 million in additions. Settled claims and cash claim payments totaled $68.6 million. Other deductions included $3.0 million in operating expenses, a $9.0 million deferred tax provision and a $1.5 million increase in outstanding claim offers.

The Funds Received Ratio increased from 30.5% to 43.6% in February 2016, with retroactive application to eligible claims approved since inception. That adjustment is important context for the unusually large claims payments and prevents treating the total as payments solely on newly resolved claims. Cash, cash equivalents and investments ended the year at $466.3 million; unrealized gains of $12.5 million partly offset $57.8 million in net cash outflows.

Thorpe Insulation’s net claimants’ equity decreased by $8.2 million in 2015 to $520.3 million. Investment income of $9.2 million was partly offset by $3.5 million in net realized and unrealized losses. A $2.5 million reduction in outstanding claim offers also increased equity. The principal deductions were $12.2 million in settled claims, $3.1 million in operating expenses and a $1.3 million deferred tax provision. Claims and costs exceeded the year’s additions despite positive investment income.

Cash claim payments totaled $12.2 million. Cash, cash equivalents and investments declined to $511.5 million, with $12.7 million in unrealized losses more than offsetting the statement’s $3.9 million net cash inflow. As a subsequent event, the report describes the February 2016 increase in the Funds Received Ratio from 30.5% to 43.6%, retroactive to eligible claims approved since inception; that increase was not a 2015 payment event.

Thorpe Insulation ended 2014 with $528.5 million in net claimants’ equity, a decline of $6.4 million. Reported investment income of $8.8 million and realized and unrealized gains of $16.9 million supported additions of $29.5 million, which also included $1.4 million in funding and a $2.3 million reduction in outstanding claim offers. Deductions included $23.7 million in settled claims, $4.4 million in operating expenses and a $7.7 million deferred tax provision. Investment performance substantially offset the year’s claims and costs, but did not fully cover them.

Cash claim payments were $23.7 million. Cash, cash equivalents and investments ended the year at $520.3 million, after net cash outflows of $19.2 million were partly offset by $15.4 million in unrealized gains. The report describes a 30.5% Funds Received Ratio, following the retroactive increase adopted in 2013.

Thorpe Insulation’s 2012 annual report describes continued claims administration while the reorganization proceedings returned to the bankruptcy court after appeal. A February order initially limited post-remand claims payments to $5.0 million; a July order removed that cap, subject to further court orders. The report also describes insurer settlements reached in December 2012 and early 2013, distinguishing those developments from funds actually received during the reporting year.

The audited 2011 and 2012 financial statements filed with the report show the year ending with $144.7 million in net claimants’ equity, down $7.4 million. They report $4.5 million in funding, $6.6 million in investment income and gains, $13.5 million in settled claims and $4.9 million in operating expenses. Cash claim payments were $13.5 million, and cash, cash equivalents and investments totaled $139.4 million at year-end.

The 2010–2011 comparative financial statements show Thorpe Insulation’s net claimants’ equity increasing from $85.0 million to $152.1 million during 2011. New funding of $83.0 million was the principal source of growth, with a further $1.3 million deferred tax benefit. Deductions totaled $17.2 million, including $10.7 million in settled claims, $4.0 million in operating expenses and a $2.0 million increase in outstanding claim offers. The growth in resources was therefore principally funding-driven.

Cash claim payments were $12.1 million, exceeding the year’s settled-claims deduction as payments also discharged previously recognized obligations. Cash and cash equivalents increased to $147.1 million, including $5.0 million restricted for indemnification obligations. The report describes an initial Funds Received Ratio, the Trust’s pro rata payment percentage, of 17.5%.

Thorpe Insulation’s initial financial statements cover October 22 through December 31, 2010. The Trust recorded $115.0 million in initial funding and an $8.7 million deferred income tax benefit, ending the period with $85.0 million in net claimants’ equity. Deductions included $24.6 million in operating expenses, $2.2 million in court-ordered bankruptcy fees, $10.1 million in settled claims and $1.4 million in outstanding claim offers. The large initial costs reflect the Trust’s formation and related legal obligations rather than a full year of routine operations.

Cash claim payments totaled $8.8 million, distinct from the settled-claims deduction. Cash and cash equivalents ended the period at $92.7 million, including $5.0 million restricted for indemnification obligations. The deferred tax benefit increased reported equity but did not represent cash funding.