AIG signs $3.5bn asbestos deal with Berkshire Hathaway
AIG has signed a reinsurance deal with Berkshire Hathaway's National Indemnity Company to transfer the bulk of its US asbestos liabilities.
AIG subsidiary Eaglestone Reinsurance will pay National Indemnity about $1.65bn to assume the portfolio, including claims handling and collecting about $2.8bn in third-party reinsurance on the ceded reserves.
National Indemnity's net liability will be up to $3.5bn after third-party reinsurance is deducted.
Berkshire Hathaway is providing a limited guarantee of National Indemnity's payment obligations to Eaglestone under the deal...
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