New York officials will seek substantially more than $100 million to resolve a probe into whether units sold to MetLife Inc (MET:US). by American International Group Inc. (AIG:US) lacked proper licenses and provided misleading information, a person familiar with the matter said.
Both companies will probably need to pay a portion of the fine, said the person, who asked not to be identified because the discussions are private. The person couldn’t give a timeline for when the fine may be issued.
AIG is responding to requests from the New York Department of Financial Services, the top financial regulator in the state, and the Manhattan District Attorney’s Office for information about the units, Alico and Delaware American, which were sold to MetLife in 2010, the insurer said in an Oct. 31 regulatory filing.
Jon Diat, a spokesman for New York-based AIG, declined to comment on the possible fine.
MetLife, also based in New York, previously said it was contacted by regulators about whether the operations did business without a license.
John Calagna, a spokesman for MetLife, didn’t immediately respond to a call seeking comment.
Dow Jones earlier reported that New York was seeking at least $100 million.
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