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American International Group Inc spent more than $400,000 for a corporate conference at a California resort soon after the U.S. bailout of the company with an $85 billion takeover.
Congressional investigators released a document on Tuesday showing an expense document detailing the costs of the event at the St. Regis Monarch Beach Resort. An invoice states the event took place between September 22 and September 30.
The firm paid nearly $200,000 for lodging, more than $150,000 for food, about $23,000 for spa fees.
The event was held by a unit of the company named AIG American General and it had been scheduled a year in advance by the subsidiary to reward top independent sales people, spokesman Nicholas Ashooh told Bloomberg.
"This is very standard in the industry to reward the top 5 to 10% of top sellers," he said. "In the insurance business, it's as basic as salary as a means to reward performance. It was not AIG executives running away to California."
AIG spokesman Joseph Norton told the Orange County Register that the subsidiary is in much better financial condition than the parent company.
"It's one of our viable businesses," he said. "They're fully capitalized. They're fine. It wasn't a corporate kind of thing."
The Orange County first reported on the event on October 2.
The U.S. government helped AIG avoid bankruptcy by allowing the Federal Reserve to provide an $85 billion two-year loan in a deal completed September 23. The deal had been in the works in the week prior.
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