ST. PAUL, Minnesota (AP) — The Travelers Cos. Inc. said on Friday that it will settle one of its largest asbestos cases for $449 million.The St. Paul-based commercial insurer settled the case with ACandS, which installed insulation with asbestos from 1958 to 1974 and was insured by Travelers.

Travelers said it would pay $365 million of the settlement and reinsurers would cover $84 million. Travelers said its portion will come from its asbestos reserves without hurting earnings.

The settlement comes after a federal appeals court reinstated an ACandS lawsuit in January 2006 over which limits apply to ACandS's coverage. The lawsuit claimed that Travelers is liable for 45 percent of the $2.8 billion that Lancaster, Pennsylvania-based ACandS paid to settle asbestos-related claims. Travelers had $4.47 billion set aside for asbestos and environmental claims at the end of 2006.

"ACandS has been one of our most significant and longest-standing asbestos exposures," said Jay S. Fishman, chief executive of Travelers. "Eliminating the uncertainty inherent in this litigation makes this a very good outcome for our company and our shareholders."

Travelers shares fell 23 cents to $54.19 in morning trading.