AIG has cut its reported net income for the five years to 2004 by $3.92bn (£2.15bn) as...

AIG has cut its reported net income for the five years to 2004 by $3.92bn (£2.15bn) as a result of its restatement for the period, the insurer revealed in its long-delayed 10K filing with the US Securities and Exchange Commission.

The reduction in profits includes a $1.32bn (£730m), or 11.9%, decrease in its previously reported 2004 income, to $9.73bn (£5.35bn). Restated results for 2004 reflect an $850m (£467m) reserve increase for 2004's fourth quarter.

Martin Sullivan, AIG president and chief executive, said: “We are embarking on a new era for AIG that will be marked by changes in the way we operate—including greater responsiveness and transparency—while preserving the core values that have enabled us to build an unequalled franchise and effectively meet our customers needs.

"I am confident that the changes we are initiating throughout the organization will make AIG an even stronger and better company.”

Last week, New York attorney general Eliot Spitzer and New York state insurance superintendent Howard Mills filed suits against AIG, former chairman and chief executive Maurice Greenberg and former chief financial officer Howard Smith.

In addition to 2004's reduction, AIG reported a $1.27bn (£700m) decrease, or 13.6% reduction, in its 2003 net income, to $8.01bn (£4.4bn); a 6.3% increase in 2002 to $5.87bn (£3.23bn); a 22.2% reduction in 2001 to $4.17bn (£2.29bn); and a 7.5%, reduction in 2000 to $6.14bn (£3.37bn).

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