The dispute followed the $850 million accounting scandal at Ahold's Columbia, MD-based U.S. Foodservice unit last year.
In April, AIG asked a Dutch court to declare that AIG's directors' and officers' liability insurance policy excluded coverage for claims such as those arising from the incident. U.S. Foodservice filed suit in Baltimore's U.S. District Court in May, hoping to get AIG to pay the claims.
Both AIG's lawsuit and U.S. Foodservice's lawsuit will be terminated, Ahold said in a news release. No other terms of the settlement were disclosed.