Bermuda AIG Attempts Document Heist
National Underwriter News
April 4, 2005
American International Group alerted its shareholders on Sunday that it had recently discovered "efforts to remove documents and information" from its Bermuda office without proper permission from the company.
The embattled insurer stated in a letter to shareholders that the company immediately brought these incidents to the attention of the relevant authorities. AIG didn't specify, however, which Bermuda employee or employees were involved in the attempt to remove documents.
In its letter, AIG assured shareholders that the company is fully cooperating with ongoing investigations by various regulatory authorities. The company also said AIG is continuing to brief regulators on the progress of the company's own internal review.
"AIG has been cooperating with the New York attorney general and the Securities and Exchange Commission with regard to document security in New York, Bermuda, Ireland and other locations," AIG Chief Executive Martin Sullivan said in the letter.
Mr. Sullivan said his company is working "around the clock" to complete its internal review as quickly and thoroughly as possible. He added that AIG will continue to cooperate fully with all relevant authorities in their investigations and warned that "this includes terminating the employment of any AIG employee who does not cooperate with the internal review and external investigations," Mr. Sullivan said.
The company had already fired Michael Murphy, its legal counsel in the Bermuda office, for failing to cooperate with AIG's review. A number of other AIG employees in the Bermuda office have also resigned recently over the ongoing investigations.
On the brighter side, AIG may find some comfort that one major insurance analyst is now feeling a bit more bullish on the AIG stock which has been tanking in recent days. Morgan Stanley analyst William Wilt said in his research note today that "even reasonably dim views of the future" for AIG point to a support level in the high-$40-or-$50 range for its stock price. The AIG stock on the New York Stock Exchange is currently at around $50 per share in Monday's trading.