W.R. Grace Asbestos Trust Annual Reports, 2014–2025

W.R. Grace’s personal-injury trust ended 2025 with $1.83 billion in net assets, down $10.43 million from $1.84 billion. Net interest and dividends of $45.18 million and combined investment appreciation of $140.69 million, plus $10 million in insurance recoveries, generated $195.87 million in additions. Personal-injury claim expense was $187.61 million, combined operating and claims-processing expenses totaled $12.47 million, and federal income tax expense was $6.22 million. Stronger investment results and lower claim expense sharply reduced the drawdown from the $109.50 million decline shown for 2024.

The annual claims account reports 22,544 unliquidated claims paid for approximately $191.2 million and 87 pre-petition liquidated claims paid for $379,268; new unliquidated filings totaled 29,909. These payment amounts differ from claim expense because of settlement and payment timing. Despite the small net-asset decline, operating activities used $141.80 million in cash, funded by investment sales, maturities and distributions. The investment appreciation therefore helped preserve reported asset value while the Trust continued drawing on its portfolio to pay claims.

W.R. Grace’s personal-injury trust reported $1.95 billion in year-end net assets, down $45.97 million from $2.00 billion. Investment results recovered: net interest and dividends of $48.13 million and combined appreciation of $102.64 million, together with $19.25 million in insurance recoveries, generated $170.02 million in additions. Personal-injury claim expense was $203.15 million, combined operating and claims-processing expenses were $11.09 million, and federal income tax expense was $1.75 million.

The claims account reports payments of approximately $197.85 million on 21,423 unliquidated claims and approximately $77,000 on 133 pre-petition liquidated claims; 19,452 new unliquidated claims were received. The difference between payments and recognized claim expense reflects settlement and payment timing. Improved investment performance sharply reduced the annual net-asset decline compared with 2022, but additions still fell short of claims and expenses. Cash remained near $70 million because investing inflows largely matched operating cash requirements.

W.R. Grace’s personal-injury trust ended 2022 with $2.00 billion in net assets, down $351.68 million from $2.35 billion. Investment securities depreciated by $160.15 million and alternative investments by $33.47 million, producing combined investment losses of $193.62 million before $28.55 million in net interest and dividends. Insurance recoveries contributed $41.77 million. The Trust recognized $215.92 million in personal-injury claim expense, $11.62 million in combined operating and claims-processing expenses, and $841,081 in federal income tax expense.

The annual claims account reports 19,663 unliquidated claims and 96 pre-petition liquidated claims paid, while new unliquidated filings totaled 23,474. Although claim expense declined from 2021 and insurance recoveries increased, those improvements were outweighed by investment losses. The reduction in net assets consequently reflects both the continuing cost of resolving claims and weaker investment values; it was considerably larger than the $119.35 million of cash used in operating activities.

W.R. Grace’s personal-injury trust reported year-end net assets of $2.35 billion, down $214.20 million from $2.56 billion. Personal-injury claim expense increased to $263.72 million, while combined operating and claims-processing expenses were $12.52 million. Federal income tax expense rose to $26.31 million from $4 million. Insurance recoveries of $12.07 million, net interest and dividends of $36.54 million, and $39.74 million in combined investment appreciation generated $88.34 million in additions, substantially below the prior year.

The claims account reports 23,460 unliquidated claims paid for approximately $259.92 million and 589 pre-petition liquidated claims paid for approximately $480,000; 14,754 new unliquidated claims were received. Those payment figures differ from claim expense because settlement recognition and payment occur at different times. Higher claims expense and taxes, together with a smaller investment contribution, increased the annual drawdown. Cash rose to $80.55 million as net investing inflows exceeded cash used in operations, despite the decline in total net assets.

W.R. Grace’s personal-injury trust ended 2020 with $2.56 billion in net assets, down $72.23 million from $2.63 billion. The statements recognized $238.05 million in personal-injury claim expense, $12.95 million in combined operating and claims-processing expenses, and $4 million in federal income tax expense net of refunds. Insurance recoveries of $14.81 million, net interest and dividends of $48.21 million, and $119.75 million in combined investment appreciation generated $182.77 million in additions, cushioning the effect of claims and expenses.

The annual claims account reports payments on 27,708 unliquidated claims and 208 pre-petition liquidated claims, while 16,517 new unliquidated claims were received. Claim expense was markedly below the $494.11 million shown in the prior-year comparative statements. Positive investment results and lower claims expense limited the net-asset decline, although operating activities still used $157.24 million in cash. Investment sales and maturities helped fund those requirements.

W.R. Grace’s personal-injury trust reported $3.00 billion in year-end net assets, down $99.32 million from $3.09 billion. Personal-injury claim expense was $191.96 million, substantially below the $359.53 million recognized in 2015. Operating and claims-processing expenses totaled $16.42 million. Insurance recoveries of $62.84 million and a $7.28 million federal tax refund helped offset distributions and expenses; the statements also recorded $420,000 in federal income tax expense.

Investment results were mixed: interest and dividends of $53.16 million and gains in international equity and hedge funds were partly offset by $27.64 million in depreciation of investment securities. Together, investment income and net valuation changes contributed approximately $39.37 million. Cash remained nearly unchanged at $106.76 million because net investing inflows largely offset cash used in operations, even though total net assets declined. Lower claims expense and higher insurance recoveries reduced the annual drawdown compared with 2015.

W.R. Grace’s personal-injury trust ended 2015 with $3.09 billion in net assets, down $285.67 million from $3.38 billion. Personal-injury claim expense rose to $359.53 million in the first full calendar year following the Trust’s launch. Operating and claims-processing expenses totaled $15.61 million, and federal income tax expense was $2.14 million. Insurance recoveries of $41.42 million and approximately $50.18 million in investment income and net valuation changes provided $91.61 million in additions, well below the year’s claims and expenses.

Cash and cash equivalents fell from $796.11 million to $107.60 million, a much larger decline than the reduction in total net assets. That cash movement reflected both $272.35 million used in operating activities and $416.15 million used in net investment purchases. Much of the reduction in cash therefore represented movement into invested assets, while claims activity was the principal driver of the decline in the overall fund.

W.R. Grace’s personal-injury trust ended its initial reporting period, February 3 through December 31, 2014, with $3.38 billion in net assets available for claims. The statements recorded $3.12 billion in initial funding, including funding received in stock and warrants, plus $224.03 million in insurance recoveries. Interest and dividends contributed $20.61 million, and net changes in investment values added approximately $93.12 million. Deductions included $27.40 million in personal-injury claim expense, $20.61 million in combined operating and claims-processing expenses, and $30.11 million in federal income tax expense.

The period principally reflects establishment and funding of the Trust rather than a mature year of claims activity. The Trust began accepting unliquidated claims in August, and $2.95 million in settled claims remained unpaid at year-end. Cash and cash equivalents were $796.11 million, with substantial additional assets held in bonds, equities and alternative investments. The large opening asset balance should therefore be distinguished from investment earnings or cash generated by ongoing operations.