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The payment to Omaha, Nebraska-based Berkshire is due by June 30, along with interest, meaning the final figure could exceed $10 billion. (AP Photo)

(Bloomberg) – American International Group Inc. agreed to pay $9.8 billion to Warren Buffett’s Berkshire Hathaway Inc. to take on long-term risks from commercial policies written in prior years.

The reinsurance deal transfers liabilities on certain U.S. policies from 2015 and earlier, representing reserves of about $34 billion as of Jan. 1, 2016, New York-based AIG said Friday in a statement. The coverage involves so-called long-tail policies, in which claims can emerge years after a policy is issued.

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