American International Group
announced Sunday that it would restate its annual financial reports dating to the year 2000 and also would reduce shareholder equity by $2.7 billion -- about 3.3% of the company's net worth.
The troubled insurance giant expects to file its 10-K annual report, which now has been delayed three times, with the
Securities and Exchange Commission
by May 31.
"We are disappointed that we have not yet been able to file our Form 10-K, said Martin J. Sullivan, AIG president and chief executive officer. "We are working diligently to complete the filing, at the same time assuring we have accurate financial statements, rigorous accounting, greater transparency and thorough disclosure.
"We now know that there were serious issues with our internal controls, and that it is necessary for us to address those issues and strengthen our controls," he said.
Manhattan-based AIG, under investigation by New York Attorney General Eliot Spitzer over how it accounted for some transactions with some subsidiaries, said it will restate its fiscal 2000, 2001, 2002 and 2003 statements and the March, June and September quarters for 2004.
The investigation of AIG over its business with reinsurance firms has led to the dismissal of a number of executives, including the forced resignation of Maurice "Hank" Greenberg, who ruled the firm with an iron hand for nearly four decades.
AIG has lost $58 billion in market value since its troubles came to light in February. Shares closed Friday in
trading at $50.85, down 29 cents.