Loss reserves, net of reinsurance recoverable, increased 2% in 1996 compared with 10% in 1995. The 1996 increase would have been greater except that loss reserves were reduced as the result of significant payments during the year related to the settlement of asbestos-related claims against Fibreboard Corporation, which is discussed below. Loss reserves included $543 million, $999 million and $1,049 million at year-end 1996, 1995 and 1994, respectively, related to the Fibreboard settlement. Loss and expense payments related to the settlement aggregated $462 million, $60 million and $204 million in 1996, 1995 and 1994, respectively. Excluding the Fibreboard reserves, loss reserves, net of reinsurance recoverable, increased 9% in 1996 and 12% in 1995. Substantial reserve growth has occurred each year in those liability coverages, primarily excess liability and executive protection, that are characterized by delayed loss reporting and extended periods of settlement.
Since 1993, a California Court of Appeal has agreed, in response to a request by Pacific Indemnity, Continental Casualty and Fibreboard, to delay its decisions regarding asbestos-related insurance coverage issues which are currently before it and involve the three parties exclusively, while the approval of the global settlement is pending in court. Continental Casualty and Pacific Indemnity have dismissed disputes against each other which involved Fibreboard and were in litigation.
December 31, 1995. Notwithstanding continued pressure by the insurance industry and other interested parties to achieve a legislative solution which would reform the liability provisions of the law, Congress did not address Superfund in 1996. It is currently not possible to predict the direction that any reforms may take, when they may occur or the effect that any changes may have on the insurance industry. In addition, the Superfund law does not address non-Superfund toxic sites. For that reason, it does not cover all existing toxic waste exposures, such as those involving sites that are subject to state law only. Because of the large number of state sites, such sites could prove even more costly in the aggregate than Superfund sites.
Our entry into the New Jersey residential development market met with initial success. In 1996, we completed our first townhome project containing 178 units. Our second project, a joint venture, is an 84 unit townhome project which we expect to complete in 1997. At year-end 1996, 41 units were sold. In Florida, sales continued to be strong in two existing condominium projects which total 385 units. At year-end 1996, all but 41 units were sold.
SFAS No. 121 requires that we analyze our individual buildings, leased land and development sites on a continuing basis to determine if an impairment loss has occurred. Estimates are made of the revenues and operating costs, as well as any additional costs to be incurred to complete development,
Chubb Capital has outstanding $150 million of 6% notes due in 1998 and $100 million of 6 7/8% notes due in 2003. The notes are unsecured and are guaranteed by the Corporation. A substantial portion of the proceeds have been used to support our real estate operations.