American International Group Inc. says Robert Benmosche, the company’s president, is undergoing chemotherapy for cancer.

Benmosche, a former chairman of MetLife Inc., New York (NYSE:MET), took over from Edward Liddy as president of AIG, New York (NYSE:AIG), in August 2009. AIG is in the process of raising cash to repay the Federal Reserve Bank of New York and the U.S. Treasury Department for support provided during the 2008 credit crisis. This week, AIG is selling a majority stake in AIA Group Ltd., Hong Kong, a major Asian insurance business, through an initial public offering. Benmosche says in a statement released by AIG that he feels fine and is working a normal schedule. “As for my long-term prognosis — I will have a better idea over the next couple of months of what that will look like as I continue to undergo treatment and my doctors refine their diagnosis,” Benmosche says. Benmosche says he is confident in the momentum AIG has built and the company’s ability to meet obligations to taxpayers and other stakeholders.

AIG Chairman Robert Miller says the AIG board is developing plans to ensure management continuity.

- Allison Bell