Oct. 2, 2009 (United Press International) -- A U.S. insurer that received billions of federal dollars to stay afloat is hosting a $1.27 million weekend spa conference, the Chicago Tribune reported Friday.

American International Group is hosting the event for about 200 independent financial advisers in Ojai, Calif., this weekend, the newspaper said.

AIG spokesman Mark Herr told the Tribune the company was not being extravagant.

"We're hosting this event ever mindful of the atmospherics of last year," he said. "We're trying to get back to conducting business to pay back the taxpayer."

He said the event was forecast to generate $400 million in new business.

Herr said the company would only foot $30,000 of the bill, as 30 sponsor partners who sell financial products were paying the balance.

Last year the company came under congressional scrutiny for spending $400,000 for a retreat in Dana Point, Calif., while in dire financial straits, the report said.