American International Group Inc. confirmed that Win Neuger has stepped down as chief investment officer and said it has promoted Monika M. Machon to succeed him.

Mr. Neuger will remain CEO and chairman of AIG Investments, AIG said Tuesday. Ms. Machon, who was also named senior vice president, had been global head of fixed income at AIG Investments.

Ms. Machon, who joined AIG in 1998, has more than 27 years of fixed-income experience in the United States and abroad. She will continue to chair the board of AIG Investments Europe Ltd.

The Wall Street Journal reported Tuesday that Mr. Neuger would step down as chief investment officer but continue to oversee AIG's business of managing assets for external clients, which AIG is selling. The New York company's investment operation has suffered large losses.

Additionally, AIG Investments senior managing director Jeffrey J. Hurd, who also joined AIG in 1998, has been named senior vice president and head of asset management restructuring, which includes the sale of AIG's external asset management business.

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