Insurance company Ace Ltd. on Wednesday settled a bid-rigging investigation by New York, Illinois and Connecticut for $80 million in restitution and penalties, New York Attorney General Eliot Spitzer said.

Ace, a holding company based in Bermuda, and its subsidiaries were accused of bid rigging and improper transactions in so-called finite insurance and reinsurance contracts. Reinsurance is taken out by insurance companies to protect them from the risk they assume when they write traditional insurance polices such as those for homeowners and business owners. Finite-risk insurance is a type of reinsurance.