AIG to dismiss some execs

Greg Morcroft
May 16, 2005

NEW YORK (MarketWatch) -- American International Group Inc. plans to force out six or more senior executives in the next two weeks as probes into its accounting reach beyond its two top former executives, according to a published report.

The Wall Street Journal reported Monday, citing people familiar with the situation, that by forcing out more executives, the company hopes to clear out any more unpleasantness ahead of its self-imposed May 31 deadline to file its 2004 annual report. See Wall Street Journal story.

Last week, the paper reported that a high-level AIG executive reached a deal with authorities to testify about AIG's accounting in exchange for immunity.

According to sources, the newspaper said 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.

AIG shares closed Friday off 43 cents at $52.05.

Copyright 2005 MarketWatch, Inc.

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