American International Group Inc., the world’s largest insurer in terms of market capitalization, on Sunday said that its restatement of financial reporting will lead to a reduction of $2.7 billion, or 3.3%, in the net worth of the company. The restatements will cover the period from 2000 to 2003 and the quarters ended March 31, June 30 and September 30 in 2004.

AIG for the second time delayed the filing of its 10-K report with the U.S. Securities and Exchange Commission which it planned, according to the promises in late March, to file no later than April 30. The new deadline is May 31.

AIG has said that the internal review has uncovered "material weaknesses" in its internal controls and it expects an adverse opinion from its auditor PricewaterhouseCoopers.

"We are disappointed that we have not yet been able to file our Form 10 K," said Martin Sullivan, AIG President and Chief Executive Officer, adding: "We are working diligently to complete the filing, at the same time assuring we have accurate financial statements, rigorous accounting, greater transparency and thorough disclosure."

Martin J. Sullivan replace Maurice “Hank” Greenberg who resigned on March 14 amid regulatory scrutiny by New York State Attorney General Eliot Spitzer, looking at some of the reinsurance deals.