Insurance giant American International Group Inc. (AIG) has secured court approval regarding a $450 million settlement between the company and some of its rival insurers over allegations of underreporting of premiums on workers' compensation policies, reports said.
As per a federal judge's approval, AIG has reportedly agreed to make the payments and settle the allegations. The settlement reached in January between AIG and seven other insurers required court approval.
It was alleged that the company incorrectly reported the size of its workers' compensation business to state insurance regulators. Rivals claimed the underreporting was during 1980s and 1990s. AIG was making lower contributions to injured workers coverage that were not having a private coverage.
It is said that the settlement amount requires to be distributed among various insurance companies affected by AIG's actions.
In December end last year, AIG agreed to pay $100 million in fines to resolve a 50-state probe into underreporting of the company's workers' compensation premiums. Under a settlement reached with insurance regulators in all 50 states and the District of Columbia, AIG had agreed to pay about $46.5 million in additional taxes and assessments.
For its recent third quarter, New York-based AIG reported a significantly wider net loss, hurt mostly by equity-related losses stemming from volatile markets, increased catastrophe losses, and hefty impairment charges at its aircraft leasing unit.
AIG closed Tuesday's regular trading at $23.83 on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.