AIG admits £2.7bn accounts blunder
World's largest insurer reveals scale of accounting difficulties
AIG, the world’s biggest insurer, admitted at the weekend that discrepancies in its accounts would reduce its book value by $2.7bn (£1.4bn).
Transactions were misrepresented at the insurer, AIG said, through ‘material weaknesses’ in its control systems.
The shares moved up 5%, however, on Monday, and analysts were apparently relieved that the problems had not been as bad as expected.
PwC, the group’s auditor, is to issue an ‘adverse opinion’ on AIG’s controls, the insurer also said.