Bermuda's ACE Ltd. was a participant in the PPG Industries Inc. asbestos settlement agreed to in principle on Tuesday, but a spokesman for the company said that its share of the settlement would not affect future earnings as reserves had already been established for this exposure.

PPG, a Pittsburgh-based chemical and paint maker, said on Tuesday it and about a dozen insurers would pay $2.7 billion over 21 years to settle all outstanding and future asbestos claims against its bankrupt affiliate, Pittsburgh Corning.

The settlement, one of the largest in US corporate history, could set a precedent for other companies with hefty asbestos liabilities, whose share prices have been battered in recent months as legal and settlement costs for individual cases multiplied.

From 1962-1972, Pittsburgh Corning, which is owned half by PPG and half by Corning Inc., manufactured pipe insulation containing asbestos. It filed for bankruptcy in April 2000, citing 435,000 asbestos-related claims.

The settlement, which would be paid out through a trust set up by a US bankruptcy court, will be part of the reorganisation plan for Pittsburgh Corning and is subject to court approval.

By settling its estimated 116,000 claims, PPG would wipe out all current and future asbestos concerns in one fell swoop, according to experts familiar with the settlement.

Shares of PPG rose 86 cents, or about 1.5 percent, to close at $57.96 Wednesday on the New York Stock Exchange.