Maurice "Hank" Greenberg, the legendary leader of American International Group (AIG) has stepped down as head of the world’s largest insurer to be replaced by Martin Sullivan.

The management shake-up that also involved the replacement of chief financial officer comes in the wake of the regulatory probe that led the company to pay authorities $126 million in settlement payments.

AIG last month was subpoenaed by New York State Attorney General Eliot Spitzer and the Securities and Exchange Commission (SEC).

Mr Greenberg has governed the company since 1967, in which time AIG gained 50 million customers in 130 countries and increased its market value to $168.5bn.

The new CEO will be Mr Sullivan, 50, previously AIG’s co-chief operating officer.

AIG announced a delay of its 2004 financial results because of "the management changes... as well as the company’s ongoing review of the accounting for certain transactions" which was started"in connection with previously announced regulatory inquiries".