(Reuters) - Insurer Hartford Financial Services Group (NYSE:HIG) said on Friday it had agreed to a settlement with the Boy Scouts of America and would pay $650 million for sexual abuse claims associated with policies issued mostly in the 1970s.
Under the agreement, the Boy Scouts and its local councils will release Hartford from any obligation under policies it issued, Hartford said.
The Boy Scouts filed for Chapter 11 bankruptcy last February, amid a flood of lawsuits over allegations of child sexual abuse stretching back decades.
"Our agreement with Hartford is an encouraging step towards achieving a global resolution that will promote the Boy Scouts' efforts to equitably compensate survivors and continue the mission of scouting," the Boy Scouts said in an emailed statement.
The payment will be in addition to contributions from national Boy Scouts local councils, participating chartered organizations and other participating insurers, it added.
Apart from Hartford, insurer Chubb (NYSE:CB) Ltd is also facing potentially massive liabilities stemming from the Boy Scouts of America bankruptcy.