Settlement talks are underway between New York state regulators and prosecutors and American International Group and MetLife over allegations that two former AIG insurance units based in Delaware have operated in New York since 2007 without a license. AIG sold the company to MetLife in 2010.
Additionally, the two companies say in securities filings, the New York attorney general is probing whether the two insurance companies, American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm) paid New York premium and franchise taxes during that period.
The two companies, while based in Delaware, do business mostly overseas. They sell life, health and accident policies throughout the world, and are a dominant insurer in Japan. They also sell in Europe, Central and Eastern Europe, the Middle East and Latin America.
The New York authorities’ inquiries involve sales of benefits to multinational companies for employees in different countries, officials said.
The talks are being led by Benjamin Lawsky, superintendent of the New York Department of Financial Services, and Manhattan District Attorney Cyrus Vance Jr.
A spokesman for the New York DFS declined comment, as did officials from AIG and MetLife.
According to certain news organizations, New York state regulators are seeking $100 million from the two companies to settle the allegations.