Canada Pension Plan Investment Board agreed to buy Ascot Underwriting Holdings Ltd., the Lloyd’s of London insurer tied to American International Group Inc. (NYSE: AIG), as part of a $1.1 billion deal.

AIG will get about $240 million in cash proceeds, reflecting the New York-based company’s 20 percent stake in the business and ownership of a related unit in the deal, the company said in a statement. Ascot Underwriting’s ownership has included an employee trust. The $1.1 billion sum also includes a recapitalization of an entity by the buyer, AIG said.

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