AIG, other insurers settle bid-rigging suit

NEW YORK, March 21 Mon Mar 21, 2011 10:03pm EDT

NEW YORK, March 21 (Reuters) - A group of insurers and brokers including American International Group (AIG.N) have settled allegations of bid-rigging for $36.8 million.

Under terms of the settlement, AIG, Liberty Mutual, Travelers Cos (TRV.N) and XL Group (XL.N) will pay a total of $27 million, according to a memorandum of understanding detailing the settlement that was dated March 18 and provided by AIG.

The settlement of the putative class-action suit involves purchasers of commercial insurance from 1998 through 2004, according to the memo.

"Through this settlement, AIG brings an end to another long-standing lawsuit about events from many years ago, allowing AIG to continue to focus its efforts on paying back taxpayers and restoring the value of our franchise for the benefit of all our stakeholders," AIG said in a statement.

AIG's near-collapse in September 2008 almost toppled the world's financial markets and prompted the U.S. Treasury to rescue the insurer with a $182 billion bailout. (Reporting by Lewis Krauskopf; Editing by Gary Hill)

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