Shares in insurer Royal & Sun Alliance (RSA|) rose today after it said a US court had dismissed a $900 million (£450 million) claim against it by motor giant General Motors (GM).
RSA said it welcomed the ruling of the Michigan Circuit Court that GM is not entitled to coverage for its asbestos and environmental liabilities.
GM had brought the lawsuit to force RSA to reimburse its massive defence costs from asbestos-related lawsuits - put at $850 million to $900 million. RSA's US subsidiary insured GM against liability claims between 1954 and 1971.
RSA maintained that both parties understood there was no coverage under the policies for these claims.
