Former AIG chief Maurice "Hank" Greenberg and other former executives of the insurance giant have reportedly agreed to settle a lawsuit brought by a group of Ohio pension funds for $US115 million ($136.4 million).

Various media sources say the suit, which also targets former CFO Howard Smith, alleges false statements regarding AIG's financial results.

To go through, the settlement needs court approval of the case as a class action. This has been contested.

Last week insuranceNEWS.com.au reported Mr Greenberg will pay $US15 million ($17.8 million) to settle civil charges brought by the US Securities and Exchange Commission relating to alleged improper accounting transactions that inflated the insurer's reported financial results between 2000 and 2005.

Similar charges were levelled at Mr Smith, who agreed to settle for $US1.5 million ($1.78 million).

Under that settlement, neither man admitted or denied the allegations.