American International Group said that Robert H. Benmosche, its president and chief executive officer, has been diagnosed with cancer and is undergoing aggressive chemotherapy.

"The good news is that I feel fine, and I continue to work according to my normal schedule. As for my long-term prognosis–I will have a better idea over the next couple of months of what that will look like as I continue to undergo treatment and my doctors refine their diagnosis. All that said, I remain absolutely committed to my job, to AIG, and to all of our stakeholders," Mr. Benmosche said in a statement.

Robert S. "Steve" Miller, chairman of the AIG board of directors, said: "Our thoughts and prayers are with Bob and his family at this time. In the last year, Bob has made a profound impact on AIG, and under his leadership, AIG has built a very strong management team that is working hard to repay taxpayers. Speaking for the board, we have every confidence that we will all continue to work together smoothly and without interruption as AIG executes its repayment roadmap."

The board said that Mr. Benmosche had previously committed to remain CEO until AIG completely repays its taxpayer obligations–expected to happen in 2012. The board also noted "the effectiveness of [his] leadership [and] the strength of the AIG management team," saying it remained comfortable with its current succession planning timetable.

Stating that Mr. Benmosche continues to perform his job well, giving board members "no reason to expect otherwise going forward," they said "on the basis of prudence" they would establish a contingency plan, with Mr. Miller stepping in as interim CEO should Mr. Benmosche become unwilling or unable to continue to effectively serve in his current role. Mr. Miller would step into this interim position for as long as it takes to identify and select a long-term replacement.

"The choice of a long-term successor to the CEO will include a fair evaluation of internal candidates as well as external candidates," the statement said. "The process would then be concluded when, over the next two years, it is appropriate to name Bob's eventual successor."

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