American International Group (AIG), is seeking an external review of its loss reserves. Asbestos and environmental liability claims had been underestimated by about $850m.

The move comes amidst investigations by New York Attorney General, Eliot Spitzer, New York insurance regulators, the SEC and the Justice Department.

The reserves have prompted calls for an investigation in the past. The reason is that claims payments have exceeded reserves every year since 1995.

CEO Sullivan, commented, "We're comfortable that our reserves are (adequate)."

Last week, Spitzer filed lawsuits against former CEO Maurice Greenberg and former CFO Howard Smith.

AIG are imminently due to restate their figures. In a conference call with analysts, CEO Martin Sullivan reported a net worth reduction of $2.3bn. This was smaller than the expected $2.7bn.

Last week, Spitzer filed lawsuits against former CEO Maurice Greenberg and former CFO Howard Smith.

AIG are imminently due to restate their figures. In a conference call with analysts, CEO Martin Sullivan reported a net worth reduction of $2.3bn. This was smaller than the expected $2.7bn.

Related Articles
Corporate Risk Insurance
Citigroup Completes Insurance Sale
Spitzer To Set Legal Ball Rolling On AIG
AIG Executive Does Deal With Spitzer
General Re Former CFO May Be Sued
AIG Chief Admin Officer Sent On Leave