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AIG boss to resign

AIG Chairman and CEO Edward Liddy has announced his resignation less than a year after his appointment by the US Government.

AIG intends to split the role of chairman and CEO when Mr Liddy steps down from the company.

Mr Liddy says the company has made substantial progress in reducing systemic risk and is now in a stable position to refund American taxpayers.

“Our pace of success will depend on global economic conditions and financial markets,” he said. “It is likely to take several years. AIG should have a leadership team committed to a similar time horizon.”

AIG director Stephen Bollenbach says Mr Liddy “answered the call of his country. He has led AIG effectively and courageously, and without compensation.”

Mr Liddy came out of retirement to join AIG last September after the US Government announced an initial $US85 billion ($109 billion) bailout to rescue the stricken insurer.

AIG has announced the reconfiguration of its board so the majority of directors are newly elected and independent. Six new directors will stand for election at the company’s AGM on June 30.