NEW YORK, March 7 (UPI) -- The head of New York-based American International Group is under regulatory investigation over the company's reserves, the Financial Times reported.
The regulators want to know if Hank Greenberg, chairman and CEO of the international insurance and financial services group, misled investors about an increase in the company's reserves in 2000 and whether AIG used complex reinsurance contracts to inflate its financial figures, the newspaper said Monday.
In announcing the annual results in February of 2001, Greenberg had said AIG boosted its reserves by $106 million in the fourth quarter of 2000, the Times said.
Investigators are reportedly examining whether AIG used a reinsurance contract it purchased from General Reinsurance, an affiliate of Berkshire Hathaway, to inflate its reserves in that quarter.
Greenberg has received a subpoena over the matter. AIG, which has come under intense scrutiny from regulators over the past year, has declined comment.