AIG subsidiaries will pay $103m to US flooring manufacturer Congoleum to settle asbestos-related claims.
Congoleum said the settlement resolved claims against AIG units that provided excess insurance coverage under policies carrying a total of $114m in liability limits for asbestos bodily injury claims.
Under the terms of the agreement, certain AIG companies will pay up to $103m into a trust fund over a period of 10 years, provided that Congoleum's bankruptcy reorganisation plan is approved.