NAIC President Comments on AIG
May 4, 2005
Responding to AIG's announcement that it was restating its financial statements for the years 2000 to present, and that the filing of its 2004 annual report would again be delayed, Pennsylvania's Insurance Commissioner and President of the National Association of Insurance Commissioners, Diane Koken, issued the following statement:
"While I remain very disappointed at the improprieties being discovered at AIG, I am encouraged to see that the new management, under Martin Sullivan, appears to be taking steps to address the nature and extent of problems with past accounting practices and internal controls.
The Pennsylvania Insurance Department and certain other state regulators have been actively investigating the problems at AIG, and will continue to closely analyze these and all of the issues facing the AIG companies.
In addition, while it is not our practice to comment on the specifics of any open exams, the Pennsylvania Insurance Department has, in fact, been engaged in a comprehensive financial exam of AIG. We would have completed this exam by now, but have found it necessary to keep it open due to pending issues. Also, in light of recent events, we plan a more accelerated exam schedule for this family of companies in the future as we continue our analyses.
Again, I remain hopeful that AIG is working to address its financial issues and to put better internal controls in place. But regulators cannot and will not tolerate misrepresentations, misclassifications or misstatements, and we will be watching matters closely to assure the AIG companies continue on their remedial path."