AIG executive reportedly strikes deal for testimony
Last Update: May 13, 2005
SAN FRANCISCO (MarketWatch) -- A high-level executive at American International Group has reached a deal with authorities to testify about AIG's accounting in exchange for immunity, the Wall Street Journal reported late Friday.
According to sources, the newspaper said that Joseph H. Umansky, who is president of AIG Reinsurance Advisors, is said to have agreed to a deal with investigators recently.
The insurance firm has come under heavy scrutiny from regulators probing whether it manipulated its financial results.
An attorney for Umansky declined to comment, the Journal added. AIG did say that he was still employed by the insurer but would not elaborate.
Umansky is expected to discuss AIG transactions with Berkshire Hathaway Inc.'s General Re, along with those with offshore insurers, the paper reported.
The reinsurance president is believed to be the first AIG official to make a deal with immunity from potential charges, the Journal wrote. AIG already has seen two top executives -- Chief Financial Officer Howard I. Smith and Chief Executive Maurice "Hank" Greenberg -- exit the company in the wake of the widening investigations into the insurance business.
Shares of AIG fell 43 cents to close at $52.05 Friday.