Florida May Revoke License of AIG

Los Angeles Times
May 19, 2005

American International Group Inc. may lose its Florida license over transactions that cut its net worth by $2.7 billion.

AIG on May 1 said improper transactions that boosted its assets might have "involved misrepresentations" to management, regulators and auditors.

The Florida Office of Insurance Regulation has ordered AIG to detail the extent of the misrepresentations and "remove any parties" responsible for them.

New York Atty. Gen. Eliot Spitzer and the Securities and Exchange Commission first subpoenaed the company in February, investigating its reinsurance business.

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