Alleghany said the $400 million deal is with AIG Property Casualty Inc. and the National Indemnity and Resolute Management operations at Omaha, Nebraska-based Berkshire. (Photo: Thinkstock)

(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.

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