Insurance compensation to SSAB confirmed
June 03, 2008 13:20 CEST 6 min read
The Swedish Supreme Court has rejected Zürich’s appeal regarding insurance compensation to SSAB. The judgement delivered by Svea Court of Appeal is thereby confirmed.
As earlier announced, on January 25, 2008, Svea Court of Appeal delivered a judgement according to which the insurance company, Zürich Insurance, Sweden Branch, was ordered to pay SSAB’s wholly owned subsidiary, SSAB Tunnplåt AB, additional insurance compensation of approx. SEK 161 million as well as interest and compensation for litigation costs relating to a blast furnace breakdown which occurred at the company’s plant in Luleå in 1997. Including accrued interest, the awarded compensation totalled approx. SEK 302 million, excluding compensation for litigation costs. Subsequent hereto, Zürich Insurance, Sweden Branch has appealed against the judgement to the Swedish Supreme Court, which according to a decision dated June 2, 2008, rejected the appeal. Consequently, the judgement delivered by Svea Court of Appeal is thereby finally confirmed. In addition to the insurance compensation awarded according to the judgement, approx. SEK 110 million has already been paid out in compensation as a consequence of the breakdown. The final judgement has a positive impact on SSAB’s earnings in the amount of approx. SEK 260 million.