AIG

(AIG) - Get Report

won't make Monday's deadline to file its financials with regulators, according to published reports.

The Wall Street Journal

reported Friday that the insurance giant is struggling to make sense of its books and that a possible restatement could reduce its net worth by $2.5 billion or so.

AIG is preparing its 2004 annual report, in which it will likely restate earnings for the past several years. The company has said previously that it could restate earnings by as much as $1.7 billion, but many expect the final number to be higher.

Earlier this week the investigation into the company's accounting practices took a new twist, with allegations that the giant insurer may have shortchanged New York on making workers' compensation payments.

The investigation of AIG has led to the dismissal of a number of other executives, including the forced resignation of Maurice Greenberg, the insurance executive who ruled AIG with an iron fist for nearly four decades.

AIG closed at $51.14 Thursday.