American International Group
plans to absorb as much as $5 billion in losses from its insurance units hit by $13 billion in writedowns,
, citing Christopher Swift, vice president for life and retirement services, said AIG was increasing the amount of losses it would take on from a dozen units, up from an earlier commitment of $500 million. It also may inject an undisclosed amount of capital in some units, the article said.
AIG has been reeling since being forced to raise $20 billion to cover
tied to the writedowns of its portfolio of credit derivatives and mortgage-related products. The company earlier this month
and replaced him with Chairman Robert Willumstad.
This article was written by a staff member of TheStreet.com.