AIG, Chubb Appeal M&A Settlement Ruling to Delaware High Court

American International Group Inc. and Chubb Ltd. units are appealing a Delaware state court ruling that sided with policyholders on a contentious insurance clause limiting payouts for acquisition-related shareholder settlements.

The insurers filed a notice of their appeal to the state’s high court on Wednesday. The move was widely anticipated as a pile-up of disputes in Delaware over the “bump-up” exclusion has pushed carriers to seek definitive answers on whether they’ll have to cover costly claims for post-acquisition litigation.

The provision, which is common in D&O policies, has become a sticking point as insurers seek to deny coverage for settlements ...