AIG agrees to assist regulators

THE investigation into the activities of American International Group (AIG) has taken another twist after the company agreed not to destroy any documents held in its Irish subsidiary.

A statement from new chief executive Martin Sullivan said employees must not steal or destroy any internal documents and must co-operate with regulators who are investigating the company’s transactions.

The company last week sacked a top executive in Bermuda for not co-operating with investigators, including the US Securities & Exchange Commission and the New York Attorney General’s office.

Investigators around the world are looking at transactions involving AIG and the Dublin branch of General Re, the re-insurance firm owed by billionaire investor Warren Buffett.

AIG last week admitted to an “improper” deal with General Re’s Dublin office. The $500 million transaction, concluded over four years ago, helped to boost AIG’s revenue and profits.

The Gen Re Irish branch, based in the International Financial Services Centre, Dublin, has come under intense regulatory scrutiny in recent months.

Last October, two executives from the office were banned from working in the Australian financial services sector. The Australian Prudential Regulation Authority (APRA) is still looking at General Re and its subsidiary Cologne Re, while the Irish Financial Services Regulatory Authority is also believed to be examining the operation.