(Bloomberg) — Weston Hicks's Alleghany Corp. will pay $400 million to wind down reinsurance deals with American International Group Inc. and Warren Buffett's Berkshire Hathaway Inc. for policies that date back decades.
Transatlantic Reinsurance Co., owned by Hicks's firm, will end contracts that covered asbestos-related illness and environmental liabilities, according to an Alleghany regulatory filing Tuesday. Alleghany will post a $20 million charge in the fourth quarter tied to the accord.
AIG has been cutting ties with Transatlantic since spinning off the reinsurer in public offerings in 2009 and 2010. Hicks reached a deal in 2011 to buy the company, and a year later AIG agreed to pay Transatlantic at least $45 million to settle disputes tied to securities-lending losses that occurred when the companies were together.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
