AIG strikes $34bn legacy deal with Berkshire Hathaway

AIG has agreed the biggest legacy deal in the history of the
P&C insurance market, with Berkshire Hathaway set to take on 80
percent of the risk on $34bn of the insurer's US commercial
reserves.
Ajit Jain's National Indemnity Company (Nico) will assume 80
percent of the net losses and net allocated loss adjustment
expenses on the reserves in excess of the first $25bn for the 2015
accident year and prior. Nico's liability is capped at
$20bn.
The $9.8bn consideration...