2006-04-10_REPORT - M1980244 - Laserfiche WebLink

Home Browse Search

4 LIBERTY MUTUAL HOLDING COMPANY INC. Notes to Consolidated Financial Statements (dollars in millions) Unaudited Armstrong in 2002, is pending in the United States District Court for the Eastern District of Pennsylvania seeking covemge for asbestos claims under insurance policies issued to Armstrong during the period of 1973 to 1981, including, but not limited to, damages and a declaration regarding the availability, applicability and scope of alleged non-product coverage not subject to the aggregate limits of the policies. Armstrong contends that a silmificant portion of its asbestos Lability arises From operations that would entitle Armstrong ro insurance coverage under the disputed policies without regard to the aggregate limit of liability. The Pennsylvania action is currndy in the initial pleading stages and is inactive by agreement of the patties. In February 2004, Arnstrong filed, in the same Pennsylvania District Coutt, a Motion to Vacate the appellate arbitration award that was favorable to the Company. In turn, the Company fried a Motion to Confirm the Appellate Panel's Award. The Company intends to vigorously defend its position. Management believes that the ultimate IiabiGry, if any, to Armstrong will not be resolved for at least one year and very likely may not be known for several years. In the opinion of managemenq the outcome of these pending matters is difEcult to predict and in the event of an adverse outcome, could have a material adverse effect on the Company's results of opemdons, financial condition and liquidity. At December 31, 2005, the Company had unfunded capital mmmltments to private equity, commercial mortgages and energy investments of $1,072. At December 31, 2005, the Company bad commitments to purchase various mortgage-backed securities settling in 2006, at a cost of $120 with a Fair value of $121 and are included as fixed maturities in the consolidated balance sheet.