Defunct Insurance Firm Receivership May Pay

A Missouri judge has predicted that the Transit Casualty Insurance Co. receivership will end up paying $1.2 billion to creditors when the receivership shuts down next year.

According to a Knight Ridder news service report, when Transit first became insolvent in 1985, the Missouri Department of Insurance estimated that the recovery of claims would amount to $300 million. But should Cole County Circuit Judge Byron Kinder’s prediction come true, claimants will get only about 75 percent of the amount of their actual claims

. It has been estimated that the final cost of liquidating the company would be about $340 million.