A US government insurance industry watchdog has blasted AIG over US reports it will again push for bonuses for top executives.

“Recent reports that AIG continues to seek to pay out retention bonuses to its employees are extremely disappointing, especially considering that too many families are struggling financially as a result of the economic crisis to which AIG’s collapse contributed,” Congressman Paul Kanjorski said.

Mr Kanjorski is Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises.

“Effectively monitoring AIG remains one of my top priorities in the committee and I anticipate that we will further address this issue at a future hearing,” he said.

AIG earlier agreed to restructure corporate bonuses after coming under fire over the payment of $US165 million ($207 million) to employees in its financial products division. Some employees later returned the money.

But AIG is in some cases bound to pay bonuses in line with retention contracts approved before its $180 million ($225 million) US Government bailout.