American International Group Inc. said Wednesday that it will restate its financial results again as part of a continuing investigation of its accounting practices.
The company said it will restate financial results, mostly pertaining to derivatives and hedges, reported since 2002. The errors caused AIG to understate previous consolidated results by $500 million, the company said.
AIG said at the end of May it had overstated net income for the past five years by $3.9 billion, or 10%. It subsequently issued a regulatory filing in which it cut its net worth through the end of 2004 by $2.26 billion, or 2.7%.
The insurer also said it will delay reporting its third-quarter results until Monday. The New York-based company, which is the world's largest insurer by market value, has been the subject of state and federal accounting probes this year.
AIG estimated $1.7 billion of net profits for the third quarter, despite significant claims stemming from Hurricanes Katrina and Rita. It estimated its hurricane claim payments will total $1.6 billion, or $1.23 per share.
