Big overhaul may loom at AIG

CHARLOTTE, N.C. - American International Group Inc. said yesterday that it is reviewing its operations and discussing possible options with outside parties to improve its business after a week when its stock dropped 45 percent amid concerns about the company's financial underpinnings.

"We're looking at a lot of options. We're talking with a lot of parties," said spokesman Nicholas Ashooh.

New York Insurance Superintendent Eric Dinallo and a representative of the governor's office have spent the weekend at AIG, working with the company and others to craft a solution that protects policyholders, said Dinallo's spokesman, David Neustadt.

AIG's chief executive, Robert Willumstad, who took the reins on the world's largest insurer in June, may announce a turnaround plan today, possibly involving the disposal of major assets, including its aircraft-leasing business and other holdings, The Wall Street Journal reported.

Willumstad has indicated he was willing to shed some assets, saying about a month ago that a "less complex AIG would be a better competitor."