The settlement resolves outstanding mortgage guaranty claims disputes in accordance with agreed-to claims processes and payment formulae. It includes claims pending related to the creation, offering and sale of residential mortgage backed securities from which AIG and its units suffered losses.
It also covers AIG's objections to the $8.5 billion settlement of Countrywide's mortgage repurchase obligations to various investors.
"We are very pleased to have this matter resolved," said Robert H. Benmosche, AIG President and Chief Executive Officer in a release. "Today's settlement is a just resolution that's in the best interest of our various stakeholders."