AIG Pays Berkshire Unit $1.7B To Take Asbestos Risk

Law360, New York (April 20, 2011, 11:58 AM EDT) -- A Chartis Inc. reinsurance unit will pay Berkshire Hathaway Inc.-owned insurer National Indemnity Co. $1.65 billion in exchange for its assumption of potentially billions of dollars in outstanding asbestos risk, Chartis parent American International Group Inc. said Wednesday.

Eaglestone Reinsurance Co. will make the payment to National Indemnity, which will assume potentially $3.5 billion in liability under the deal but stands to recover as much as $2.8 billion worth of reinsurance recoverables, AIG said in a filing with the U.S. Securities and Exchange Commission.

New York-based...
To view the full article, register now.