American International Group, a provider of insurance and financial services, has reached a settlement with the Pennsylvania Insurance Department relating to the department's investigation into the affairs of AIG and certain of its Pennsylvania-domiciled insurance company subsidiaries.

The settlement calls for total payments of approximately $13.5 million, of which approximately $4.4 million has already been paid.

During the term of the settlement agreement, American International Group (AIG) will provide annual reinsurance reports, as well as maintain certain producer compensation disclosures and ongoing compliance initiatives.

Under the agreement, AIG neither admits nor denies the allegations made by the department.