Western Asbestos Asbestos Trust Annual Reports, 2004–2025

Western’s net claimants’ equity declined $15.81 million in 2025, from $371.58 million to $355.76 million. Investment income after investment fees of $10.87 million and realized and unrealized gains of $24.46 million supported $37.71 million in claims settled. A $16.20 million current tax provision was partly offset by a $5.86 million deferred tax benefit, while outstanding claim offers increased $1.80 million. Gross operating expenses of $2.67 million were reduced by $1.27 million in shared-service reimbursements to approximately $1.41 million. No additional funding was recorded, compared with $8 million in 2024.

The claims report records 568 claims received, 477 offers issued, and 416 claims paid. Lower settlement expense and higher investment gains helped offset the loss of additional funding, but taxes and other costs left a decline in equity similar to the prior year. The tax benefit and investment valuation gains are accounting components of that result, rather than equivalent amounts of cash received.

Western ended 2024 with net claimants’ equity of $371.58 million, down $15.51 million from $387.08 million. Additional funding of $8 million, investment income after investment fees of $10.96 million, and realized and unrealized gains of $14.16 million helped support $42.67 million in claims settled. Combined current and deferred tax provisions totaled $6.77 million. Gross operating expenses of $2.78 million were reduced by $1.31 million in shared-service reimbursements to approximately $1.47 million, and outstanding claim offers declined $2.17 million. Settlement expense remained close to 2023’s level, but lower additional funding and smaller investment gains contributed to a larger reduction in equity.

Western’s net claimants’ equity declined $4.09 million in 2023, from $391.17 million to $387.08 million. Additional funding of $16 million, investment income after investment fees of $8.91 million, and realized and unrealized gains of $27.14 million largely offset $42.12 million in claims settled and $11.47 million in combined current and deferred tax provisions. Gross operating expenses of $2.63 million were reduced by $1.40 million in shared-service income to approximately $1.22 million, while outstanding claim offers increased $1.43 million. The return to investment gains and receipt of additional funding sharply reduced the decline in equity compared with 2022, despite higher settlement expense.

Western ended 2022 with net claimants’ equity of $391.17 million, down $54.70 million from $445.87 million. Realized and unrealized investment losses of $49.27 million were the principal pressure, partly offset by $6.51 million in investment income after investment fees and an $18.98 million deferred tax benefit. The report recorded $24.79 million in claims settled, a $3.33 million increase in outstanding claim offers, and $1.27 million in current tax expense. Gross operating expenses of $2.87 million were offset by $1.13 million in shared-service income, leaving approximately $1.73 million. Although administrative spending and settlement expense were lower, investment losses drove a substantial decline; the deferred tax benefit was an accounting offset rather than new claimant-payment cash.

Western’s net claimants’ equity declined $2.52 million in 2021, from $448.39 million to $445.87 million. Investment income after investment fees of $5.75 million and realized and unrealized gains of $32.10 million offset most of the $25.45 million in claims settled and $11.65 million in combined current and deferred tax provisions. Gross operating expenses of $4.27 million were reduced by $1.23 million in shared-service income to approximately $3.04 million. Lower settlement expense and stronger investment gains brought the year close to balance, although taxes and administration still required a modest draw on accumulated resources.

Western ended 2020 with net claimants’ equity of $448.39 million, down $19.02 million from $467.41 million. Investment income after investment fees was $7.78 million, and realized and unrealized gains added $23.91 million. Claims settled fell to $40.02 million from $196.29 million in 2019, but those charges, $9.07 million in combined current and deferred tax provisions, and operating costs still exceeded additions. Operating expenses were $4.36 million before $1.16 million in shared-service income, leaving approximately $3.20 million after that offset. Unlike 2019, no additional funding was recorded. The smaller equity decline reflects a return to much lower settlement and operating expenses following the prior year’s payment-percentage increase.

Western’s net claimants’ equity declined $114.71 million in 2019, from $582.12 million to $467.41 million. Claims settled totaled $196.29 million, substantially exceeding $48 million in additional funding, $12.12 million in investment income after investment fees, and $44.39 million in realized and unrealized gains. Operating expenses were $10.22 million before $1.30 million in facility and staff-sharing income, while combined current and deferred tax provisions totaled $15.87 million.

The payment percentage increased from 48% to 51.1% in May, with earlier claimants eligible for additional amounts. The report records 930 claims received and 291 paid. The large settlement total includes the effects of increased payments on earlier claims, making it inappropriate to treat the full amount as the cost of the 291 claims paid during the year.

Western’s net claimants’ equity increased $54.86 million in 2018, from $527.26 million to $582.12 million. The principal support was $82.50 million in additional funding, supplemented by $10.42 million in investment income after investment fees and an $18.71 million deferred tax benefit. These additions exceeded $20.34 million in claims settled, $13.38 million in realized and unrealized investment losses, $12.37 million in current tax expense, and $10.44 million in operating expenses. Facility and staff-sharing income offset $1.31 million of operating costs.

The annual report records 837 claims received and 258 paid. The increase in equity thus depended on additional funding and the tax benefit despite investment losses; it should not be read as a positive investment return. This report also reclassified investment fees from operating expenses to a reduction of investment income, without changing equity.

Western ended 2017 with net claimants’ equity of $527.26 million, a decline of only $881,048 from $528.14 million. Investment income of $12.40 million and realized and unrealized gains of $42.53 million nearly offset $34.25 million in claims settled, $9.73 million in reported operating expenses, and $13.33 million in combined current and deferred tax provisions. Facility and staff-sharing income supplied another $1.31 million. Strong investment gains and lower settlement expense kept equity nearly stable despite higher reported costs. The operating-expense total includes investment fees; the following year’s statements reclassified those fees against investment income, so comparisons of the expense totals require that adjustment.

Western’s net claimants’ equity declined $30.31 million in 2016, from $558.45 million to $528.14 million. Investment income of $12.47 million and realized and unrealized gains of $12.72 million did not cover $42.64 million in claims settled, $6.54 million in reported operating expenses, and $5.56 million in combined current and deferred tax provisions. Facility and staff-sharing income contributed $1.34 million, while outstanding claim offers increased $1.69 million. Settlement expense was close to 2015’s level, and the Trust again used part of its accumulated resources to meet claims and other costs. Operating expenses in this report include investment fees, which later reports present as a reduction of investment income.

Western ended 2015 with net claimants’ equity of $558.45 million, down $31.88 million from $590.33 million. Claims settled were $43.68 million, substantially below the prior year’s $219.75 million. Investment income of $14.31 million was reduced by $2.22 million in realized and unrealized losses. Reported operating expenses totaled $5.42 million, with $1.52 million in facility and staff-sharing income offsetting part of that cost. A $19.61 million deferred tax benefit offset most of the $20.40 million current tax provision, and outstanding claim offers declined $4.29 million. Lower settlement expense moderated the decline in equity, but investment results were insufficient to fund the year’s overall deductions.

Western’s net claimants’ equity fell $192.52 million in 2014, from $782.85 million to $590.33 million. Claims settled totaled $219.75 million, far above the preceding year, while investment income of $19.36 million and realized and unrealized gains of $30.14 million cushioned the reduction. Reported operating expenses were $6.60 million, partly offset by $1.21 million in facility and staff-sharing income. A $25.11 million current tax provision was partly offset by a $10.56 million deferred tax benefit.

The payment percentage increased from 44% to 48% in September, with retroactive payments provided for under the Trust’s procedures. The annual report records 611 claims received and 539 paid. The large settlement charge therefore needs to be read in the context of increased payments on prior claims, rather than attributed solely to that year’s newly paid claims.

Western’s net claimants’ equity was nearly unchanged in 2013, ending at $782.85 million compared with $783.02 million a year earlier. The report records $18.55 million in investment income and $67.64 million in realized and unrealized gains, together with a $6.58 million reduction in outstanding claim offers. These additions largely offset $59.94 million in claims settled, $29.54 million in combined current and deferred tax provisions, and $4.83 million in operating expenses. Facility and staff-sharing income contributed $993,564. The modest $173,669 decline reflects strong investment results offsetting substantial claim and tax charges. Expense and investment-income figures follow this report’s presentation; later reports reclassified investment fees between those categories without changing equity.

Western’s net claimants’ equity declined $9.50 million in 2012, from $792.52 million to $783.02 million. Investment income of $19.89 million and realized and unrealized gains of $46.89 million provided substantial support, but were outweighed by $46.14 million in claims settled, $22.60 million in combined current and deferred tax provisions, $3.10 million in operating expenses, and a $5.33 million increase in outstanding claim offers. Facility and staff-sharing income added $818,680. Strong investment performance limited the reduction in equity, while the increased outstanding-offer liability and deferred tax expense explain why the change in equity cannot be equated with cash paid to claimants.

Western ended 2011 with net claimants’ equity of $792.52 million, down $14.52 million from $807.05 million. Investment income of $21 million and realized and unrealized gains of $20.52 million covered most of the $40.45 million in claims settled. Other deductions included $3.20 million in operating expenses, $8.68 million in combined current and deferred tax provisions, and a $3.91 million increase in outstanding claim offers. Facility and staff-sharing income of $628,644 offset part of the operating cost. The decline was much smaller than in 2010, chiefly because settlement expense returned to a substantially lower level while investment results remained positive.

Western’s net claimants’ equity declined $148.34 million in 2010, from $955.39 million to $807.05 million. Claims settled rose to $194.58 million, while investment income of $24.75 million and realized and unrealized gains of $27.70 million provided a partial offset. Operating expenses were $3.89 million, with $527,398 in facility and staff-sharing income, and current and deferred tax provisions totaled approximately $11 million.

The payment percentage increased from 40% to 44% in February 2010, with the Trust’s procedures providing retroactive increases for previously paid claims. That context matters when assessing the sharp rise in settlement expense. The annual report records 969 claims received and 748 paid, so the settlement total should not be interpreted simply as the cost of those newly paid claims.

Western’s net claimants’ equity recovered to $955.39 million in 2009 from $879.26 million, an increase of $76.13 million. The improvement reflected $42 million in additional initial funding, $29.58 million in investment income, and $73.26 million in realized and unrealized gains. These additions more than covered $31.23 million in claims settled, $5.41 million in operating expenses, a $27.64 million income tax provision, and a $4.76 million increase in outstanding claim offers. The year’s recovery therefore combined new funding with a reversal of the prior year’s investment losses; it was not solely an investment-driven increase.

Western ended 2008 with net claimants’ equity of $879.26 million, down $101.01 million from $980.27 million. Realized and unrealized investment losses of $117.79 million were the largest adverse factor, outweighing $32.83 million in investment income. The Trust also recorded $47.64 million in claims settled and $6.45 million in operating expenses. A $37.84 million income tax benefit partially offset the decline; that accounting benefit should not be treated as equivalent to new cash funding. Claims settled were far below the prior year’s $213.70 million, but investment losses still caused a substantial reduction in resources.

Western’s net claimants’ equity fell $170.61 million in 2007, from $1.151 billion to $980.27 million. The audited financial statements filed with the report show $213.70 million in claims settled, compared with investment income of $40.64 million and realized and unrealized gains of $15.74 million. Operating expenses were $2.66 million and the income tax provision was $11.47 million. Cash claim payments totaled $213.66 million.

The payment percentage increased from 34.2% to 40% in July 2007, retroactive to previously approved claims, and approximately $182.60 million was paid under percentage increases and inflation adjustments. The annual report records 933 claims received and 917 paid and closed. The exceptionally large distributions therefore included catch-up payments to earlier claimants, rather than simply a surge in newly resolved claims.

Western ended 2006 with net claimants’ equity of $1.151 billion, down $10.53 million from $1.161 billion. Investment income of $42.56 million and realized and unrealized gains of $29.56 million offset most of the $62.13 million in claims settled, $17.88 million tax provision, and $1.66 million in operating expenses. Actual cash claim payments were substantially higher at $124.56 million, reflecting payment of obligations recognized earlier as well as current activity.

The annual report records 1,626 claims received and 1,408 paid and closed. The payment percentage increased from 31.5% to 34.2%, and approximately $78.79 million was paid under the percentage increase and inflation adjustments. Strong investment results limited the reduction in reported equity despite these substantial distributions.

Western’s net claimants’ equity declined from $1.253 billion to $1.161 billion in 2005, a reduction of $91.64 million. The audited financial statements filed with the report show $35.09 million in investment income, $4.07 million in realized and unrealized investment losses, $10.81 million in operating expenses, and $112.88 million in claims settled. Actual cash claim payments were $50.72 million; the larger accounting charge reflects, in part, recognition of obligations associated with the payment-percentage increase approved in February 2006, rather than cash paid during 2005.

The annual report records 1,704 new Trust claims and 1,108 paid and closed claims. The payment percentage rose from 31.5% to 34.2% after year-end, with retroactive application, and the statements recorded an approximately $61.30 million liability for the increase. This timing difference is central to understanding the decline in equity.

Western began operations on April 22, 2004, with approximately $2.001 billion in initial funding and ended its first reporting period with $1.253 billion in net claimants’ equity, as shown in the audited 2005 and 2004 financial statements filed with the 2005 report. Those statements report $655.58 million in claims settled, $47.87 million in court-ordered claimants’ attorney fees, and $7.67 million in operating expenses. The annual report describes payments of $646.30 million on 5,393 pre-petition liquidated claims, alongside the launch of processing for newly submitted claims: 1,475 were received, 72 paid and closed, and 111 additional offers made. The first year therefore chiefly reflects initial funding and payment of the inherited claim inventory.