AIG To Miss Deadline

American International Group said that the improper reporting of financial results came from a reinsurance contract with Warren Buffett’s Berkshire Hathaway.

AIG said that it will miss the deadline tomorrow for filing its Form 10-K with the SEC, and plans to publish the report by the end of April.

According to an article frm The Street,

“American International Group conceded Wednesday that a five-year-old contract with Warren Buffett’s Berkshire Hathaway did not encompass enough risk-transfer to be considered an insurance transaction, and will be reclassified as a loan as part of a broad financial restatement.

Formal recognition of that accounting mistake and several others, including a concession that AIG had effective control over two offshore insurance vehicles with which it did ostensibly arm’s-length transactions, was contained in a press release in which the insurance company said it would delay filing its 10-K with the SEC.”

AIG recently replaced CEO Greenberg with co-Chief Operating Officer Martin Sullivan.

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