JP Morgan Chase and 11 insurers it sued for $1.1bn (€1.06bn) have settled out of court in their fight over Enron-related surety bonds in a deal that will net the US bank about 60% of its claim, although it will take a $1.3bn charge that will hit fourth quarter profits.

JP Morgan Chase sued the insurers last year after they declined to pay up on defaulted surety bonds linked to commodity transactions with Enron, the collapsed energy trading company.