Insurer AIG ousts chief executive

AIG shares have halved in value over the past year

American International Group (AIG), which has suffered record losses from the sub-prime crisis, has fired its chief executive Martin Sullivan.

The world's largest insurer named former Citigroup banker Robert Willumstad as its new CEO.

Mr Sullivan is the latest Wall Street boss to lose his job in the wake of the collapse of the US mortgage market and the global credit crunch.

AIG shares have halved in value over the past year.

Mr Sullivan joins the likes of Stanley O'Neal and Charles Prince, the former chiefs of Merrill Lynch and Citigroup, who were also replaced after their firms sustained massive losses related to the sub-prime mortgage market.

The insurer had reported two consecutive quarters of record losses as it made $20bn worth of writedowns on the value of risky assets.

Mr Willumstad, who will come under pressure to lift AIG's share price, hopes to come up with a plan to revive the insurer's fortunes by September.

Mr Sullivan began his career at AIG in London as a 17-year-old clerk.