AIG has plunged 96 percent in the past 12 months.

Pasciucco said in an April interview that winding down the bets would take until at least the end of 2010.

Accounting Changes

The insurer said it doesn’t expect it will have to make payments under contractual agreements tied to the regulatory relief swaps, most of which will be terminated over the next year. Because of accounting changes, benefits to banks from the contracts will diminish after Dec. 31, the insurer said. The pace at which AIG terminates the transactions will be affected by credit performance of underlying assets, the company said.

“No event related to these securities or their holders prompted this filing,” said Christina Pretto, a spokeswoman for AIG, in an e-mail today. “As part of the SEC comment period on our financial disclosures, we are reclassifying our previous disclosures on the regulatory capital book as ‘risk factors.’”

AIG said it was unable to provide full details on the value of assets backed by the swaps because of confidentiality agreements with counterparties and lack of information about debtors on loans tied to the contracts.

Home Loans

The $192.6 billion figure for the swaps is comprised mostly of $99.4 billion tied to corporate loans and $90.2 billion linked to prime residential mortgages, the insurer said in a May 7 filing. The combined total was reduced from $234.4 billion on Dec. 31.

Most of the home loans tied to the European swaps are first-lien mortgages for owner-occupied properties, the insurer said in March. The other transactions include secured and unsecured corporate loans.

The fair value of the derivative liability was $393 million as of March 31, compared with $379 million on Dec. 31, according to AIG filings.

AIG’s $182.5 billion bailout includes $30 billion to help retire swaps linked to subprime mortgages. The package also includes $22.5 billion to unwind the securities-lending program, a $60 billion credit line and an investment of as much as $70 billion."