AIG is expected to announce a settlement with federal and state regulators later this week that will require the company to pay about $1.6bn, according to reports.
AIG had been investigated by the Securities and Exchange Commission (SEC) and New York attorney general Eliot Spitzer over allegations of improper accounting and bid-rigging.
The settlement is not expected to ban contingent commissions, which are payments for steering insurance contracts to certain companies.
The deal is still subject to approval by the SEC, the reports said.
