Mr. Sullivan made the comments in a presentation for investors today initially scheduled to discuss life insurance. He said the agenda was changed in response to investor demand for more information about the company's mortgage holdings as the worst U.S. housing slump in 16 years deepens.
The insurer has fallen 22 percent in New York trading this year on concern about losses tied to subprime mortgages. AIG is the third-worst performer in the Dow Jones Industrial Average after Citigroup Inc. and Home Depot Inc. AIG recorded $864 million in losses on investments before taxes in the third quarter and marked down other holdings by $3.39 billion, with almost half the markdowns in securities linked to home loans.
AIG rose $2.60 or 4.7 percent to $58.25 in 9:37 a.m. New York Stock Exchange trading. The company has units that originate, insure, and invest in home loans.