Aig To Pay Buffett’s Berkshire About $10 Billion In Insurance Deal

NEW YORK (Reuters) — American International Group Inc has agreed to pay roughly $10.2 billion to Warren Buffett’s Berkshire Hathaway Inc to take on many long-term risks on U.S. commercial insurance policies it has already written.The reinsurance transaction covers “long-tail” exposures, which are liabilities that can emerge long after policies are issued, from excess casualty, workers’ compensation and other AIG policies dating from 2015 and before.Berkshire’s National Indemnity Co unit will take on 80 percent of net losses in excess of the first $25 billion, with a maximum liability of $20 billion.The payment comprises $9.8 billion plus interest since the beginning of 2016.