KRIV-TV in Houston reported that the two sides have reached an agreement, months after the Astros filed suit when Connecticut General denied the claim.
"The Houston Astros and Connecticut General Life Insurance Company have reached an amicable resolution of the lawsuit brought by the club relating to the total disability policy on Jeff Bagwell," Houston attorney Wayne Fisher, who represented Astros owner Drayton McLane in the matter, told KRIV. "The details of the resolution are confidential."
The insurance policy called for the Astros to be paid $15.6 million of Bagwell's $17 million dollar salary if Bagwell became disabled. The Astros lawsuit was seeking to recover the $15.6 million plus interest.
The resolution was unrelated to Bagwell's retirement announcement Friday.
"The news conference today had absolutely nothing to do with the timing of this," Fisher told KRIV. "This matter was resolved [Thursday] as a result of a series of depositions that were taking place and conversations that transpired after those depositions. There is no direct cause and effect. It is purely coincidental.
"I thought it would be resolved. Both sides were working in good faith to achieve a resolution and I think both sides are gratified that it could be resolved without the necessity of further legal proceedings."
Alyson Footer is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.