Hank Greenberg and other former AIG executives agreed to pay $115m to settle shareholder lawsuits over the insurer’s accounts, according to people familiar with the situation.

The settlement is the latest attempt by Mr Greenberg to ease the strained relationship with AIG, which is also among the defendants in the lawsuits, and could make it easier for his investment vehicle CV Starr to buy some of the businesses being sold by the insurer to repay $80bn-plus of federal aid.