NEW YORK (AP) — A property and casualty unit of American International Group Inc. is transferring potential asbestos liabilities to a subsidiary of Warren Buffett's Berkshire Hathaway Inc. to reduce its risk.

Chartis, a core part of New York-based AIG, said Wednesday that had agreed to pay Berkshire's National Indemnity about $1.65 billion for a retroactive reinsurance policy that will cover up to $3.5 billion in asbestos losses.

Insurers buy reinsurance policies as backup coverage designed to help spread out the risk, and several of Berkshire's subsidiaries specialize in reinsurance. Berkshire and National Indemnity are both based in Omaha, Neb.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Practice Management