AIG Europe is locked in a ¤883,000 (£588,000) legal battle with broker Blanch Crawley Warren.

AIG alleged that Blanch Crawley breached its contract with the insurer in the course of placing AIG's reinsurance.

AIG said: "The claimant [AIG] claims for losses arising from the defendant's [Blanch Crawley] breach of duties owed in contract and/or tort in placing reinsurance of the claimant."

Consequently, AIG is suing Blanch Crawley for ¤883,000.

A Blanch Crawley spokeswoman said: "We're not in a position to comment as it's an on-going dispute."

Three years ago, Blanch Crawley merged with the Benfield Greig Group.