In a statement on Wednesday, AIG said the conference held at the St Regis Hotel in Los Angeles from September 24 to 28 was 'not an executive retreat', but a business conference that was already scheduled since 2007.

AIG said the event was for leading independent distributors 'to meet selected members of insurance company management to learn about ongoing developments and to provide them with product, marketing and operational updates'.

AIG added that given its current situation, 'this conference was even more essential to maintaining critical relationships with distributors and the policyholders they represent'.

Although media reports claimed it was a 'posh retreat' for employees, AIG said the vast majority of the attendees at the conference were independent business people and their guests, not AIG employees.

'The contract for the conference was arranged in 2007 and the commitment to our distributors was made at that time,' the statement added.

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