AIG Reportedly to Delay Annual Report Again

April 29, 2005

American International Group will again delay the filing of its annual 10-K report for 2004 in order to complete its review of its accounting, according to published reports.

The filing had been expected on Monday but now the insurance giant is expected to release only unaudited information along with a report on what its internal reviews have uncovered thus far, according to the Wall Street Journal and The New York Times, citing people familiar with the matter.

The newspapers report that AIG’s audit of its accounting has uncovered about $2.7 billion in errors, about $1 billion more than its last estimate but still only a fraction of shareholders’ equity.

The company is the subject of various state and federal investigations into its reporting of certain finite reinsurance transactions and its associations with some privately-held companies and offshore insurers.

According to the published reports, an internal report prepared by AIG’s lawyers addresses what internal financial controls the company had and reportedly concludes that former chairman and chief executive, Maurice R. Greenberg, and other senior executives had considerable sway to approve transactions.

Greenberg’s lawyer, David Boies, has said that Greenberg has neither been interviewed for that report nor been given an opportunity to review it.

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