Lexington Insurance Co., a unit of American International Group Inc., will pay $86.7 million to a U.S.-based Lonsdale LLC, subsidiary of a Belgian bank, according to the Wall Street Journal. The payout reportedly was tied to a dispute over insurance on loans that were made to an investor who purchased older people's life-insurance policies.
In April, an American Arbitration Association panel ruled 2-1 in favor of Lonsdale. According to reports, Lexington didn’t follow through on an insurance contract the Belgian bank took out to cover risks of investing in life settlements.
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