AIG To Terminate Swap Agreement With Brookfield Asset Management

(RTTNews) - Insurer American International Group Inc. (AIG) Monday agreed to terminate an interest rate swap agreement with Brookfield Asset Management Inc. (BAM), in exchange for the payment from Brookfield to AIG of $905 million.

The swap agreement was part of the remaining derivatives portfolio of AIG Financial Products (AIGFP) and carried on AIG's June 30, 2013 balance sheet at $900 million, and the settlement is not expected to have an impact on AIG's profit or loss.

The swap agreement was subject to previously disclosed litigation which the parties have agreed to dismiss.