Reports suggest American International Group will settle its case with the US watchdog, the Securities and Exchange Commission, over allegations of accounting abuses.

The insurer is expected to pay $800m (£455m) to resolve an investigation by the SEC into alleged accounting irregularities at the company and it is also expected to pay an additional $800m after an investigation by Eliot Spitzer, the New York state attorney-general, which also focused on alleged financial reporting abuses, The Washington Post reported.

AIG corrected its financial statements for 2000, 2001, 2002 and 2003 in May last year after finding multiple accounting irregularities.