settles Lloyd's claims against GE's collapsed insurer Electric Mutual Liability Insurance Co. (Emlico), the Boston Globe reported Saturday.

Emlico, whose sole policyholder was GE, relocated to Bermuda in 1995. It then declared bankruptcy, leaving its reinsurers holding the bill for around $500 million needed for reserves to cover GE's asbestos and environmental liabilities.

GE has also made settlements with other global reinsurers of Emlico.

Commercial Union, is still in arbitration proceedings against GE.

Reinsurers sued in Massachusetts courts, charging that Emlico knew it was bankrupt and that it relocated to gain a more favourable jurisdiction to liquidate.

The Boston Globe reported GE faces what some observers said could amount to $2 billion in cleanup costs related to its US environmental liabilities.

"The firm (Emlico) must still be formally liquidated, and it is unclear whether a Boston-based US District Court judge will move to allow the proceedings to take place in Massachusetts instead of Bermuda, where they are ongoing,'' The Boston Globe reported.