KOKEN SAYS STATES WATCHING AIG:

Responding to the announcement from American International Group that it was restating its financial statements for the years 2000 to present, and that the filing of its 2004 annual report would again be delayed, Pennsylvania Insurance Commissioner and President of the National Association of Insurance Commissioners Diane Koken maintained that states including her own are closely monitoring the insurer. She said her own department has been engaged in a “comprehensive financial exam” of AIG, which has remained open due to pending issues with the insurer.

Koken said she is encouraged by AIG’s management’s apparent willingness to cooperate with officials and address problems that have surfaced. “While I remain very disappointed at the improprieties being discovered at AIG, I am encouraged to see that the new management, under Martin Sullivan, appears to be taking steps to address the nature and extent of problems with past accounting practices and internal controls,” she said in a statement. In addition to the current financial exam of AIG by her department, Koken said she plans a “more accelerated exam schedule for this family of companies in the future as we continue our analyses.”