Former AIG exec misled insurance regulators-WSJ

Reuters
April 18, 2005


NEW YORK, April 18 (Reuters) - A former American International Group Inc. executive misled state insurance regulators early this year, The Wall Street Journal reported on Monday, citing people familiar with the matter.

The executive concerned is Christian Milton, AIG's reinsurance chief, who was dismissed last month for not cooperating with state and federal probes into AIG's accounting.

The Journal said Milton gave information that underestimated AIG's ties to at least one offshore reinsurer during a routine examination of AIG's property-casualty insurance business by the New York State Insurance Department.

Milton could not immediately be reached for comment.

AIG's dealings with and ties to at least two offshore reinsurers -- Richmond Insurance Co. of Bermuda and Union Excess Reinsurance Co. of Barbados -- figure prominently in state and federal probes of AIG.

Authorities are investigating whether AIG used reinsurance deals with these firms to shift underwriting losses and claims responsibility off its financial statements, without disclosing that it in effect controlled the companies.
 
Copyright 2005 Reuters



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