Reinsurer Sues Over AIG's $262M Asbestos Coverage Claim

Law360, Los Angeles (March 1, 2013, 7:24 PM EST) -- Transatlantic Reinsurance Co. hit American International Group Inc. with a lawsuit in New York state court Friday over coverage of a $173.6 million asbestos settlement, saying AIG hid an additional $88 million in financing charges from the reinsurer when it asked Transatlantic to cover the full $262 million cost.

The suit arises from a 2004 asbestos settlement in which AIG and AIU Insurance Co. agreed to pay Dresser Industries Inc. $173.6 million, but then entered a complex, integrated financial transaction in which AIG chose to finance...
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