US chemical and paint manufacturer PPG and several insurers will pay out around $5 billion over 21 years in a bid to settle all outstanding and future asbestos claims.

The claims were brought against Pittsburgh Corning, half owned by PPG. It was found that between 1962 and 1972 Pittsburgh Corning manufactured pipe insulation which contained asbestos. In April 2000 435,000 claims were lodged and not long after Pittsburgh Corning filed for bankruptcy.

PPG plans to make the payment through a trust set up by a bankruptcy court in the US, subject to court approval. This unprecedented case is expected to set an example for companies with similar claims looming.

Bermuda-based insurer ACE confirmed that its involvement with the PPG asbestos settlement will not affect future earnings.

The outcome of another asbestos-related case, this time in the UK, is expected to be announced next week. American giant AIG has been named as one of the firms facing liabilities. But AIG says its liabilities are minimal.

In a statement last week AIG said it has virtually no substantial long-tail asbestos exposures in the UK. “Since 1985, standard policies have contained the absolute exclusion for pollution-related damage. AIG’s reserves for asbestos-related claims continue to be appropriate.”