The move was the first of many steps that Willumstad has vowed to take after being installed as chief executive late on Sunday, as he faces the daunting task of returning the 89-year-old insurer to profitability after the company recorded its worst-ever losses over the last two quarters.

Willumstad said he telephoned Greenberg and the two planned to meet this week, as long as schedules permitted.

A meeting could begin to mend a rift between AIG and its former leader. Greenberg has in recent months been scathing in his criticism of AIG's board and management, and there are numerous lawsuits outstanding between the two sides. Greenberg left AIG in 2005 under the cloud of an accounting scandal, and is still fighting civil charges stemming from those events.

Willumstad, who replaced Greenberg's successor, Martin Sullivan, in an investor call early on Monday, vowed to move swiftly to straighten things out at AIG, which has been badly hit by market losses from risky mortgage bets.

He described himself as a "hands on" manager, and promised to unveil a concrete turnaround plan by early September, after conducting a "thorough strategic and operational review."

AIG's shares are trading at less than half the value they held a year ago, after larger-than-expected write-downs on assets linked to subprime mortgages.

Investors, badly burnt by the losses, will expect Willumstad to deliver on promises, said analysts. "Before AIG rebounds, we think investors will need to see more than a new CEO, such as solid execution," said UBS analyst Andrew Kligerman, in a note.

Willumstad, a former Citigroup executive, did not rule out shedding businesses that no longer fit into the sprawling AIG group, but did not offer anything specific. He said he does not foresee breaking the company apart, as some have suggested.

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