Texas Attorney General Greg Abbott announced yesterday that Bermuda-based insurance carrier Allied World Assurance Company Holdings Ltd. would pay the state $2.1 million to settle charges that it fixed commercial insurance prices with American International Group.

According to a civil action filed by Mr. Abbott's office yesterday along with the agreement to settle it, AWAC “was the brainchild of [then] AIG Chairman Maurice ('Hank') Greenberg.”

Mr. Greenberg–who was forced out of his AIG posts in 2005, and who is currently chairman and chief executive officer of C.V. Starr & Company–is facing civil fraud charges brought by the New York Attorney General's Office.

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