Services Inc. $11 million to settle a dispute resulting from the purchase of the company from Alexander & Alexander in 1987.

The settlement is subject to a definitive agreement.

The Bermuda-based international property and casualty insurance company said the settlement includes about $6 million related to certain tax payments, the discharge of debt to Alexander & Alexander in 1995 and the release of all Alexander & Alexander obligations to Sphere Drake, according to Bloomberg business news service.

The settlement will not have a negative impact on Sphere Drake's earnings, since the amount was already set aside, the company said.

The settlement also will not discharge cash indemnities provided by Alexander & Alexander to Sphere Drake, which are unlimited in time and amount and payable in cash.