Pursuits

AIG Cuts Munis by $5 Billion; Benmosche Adds Mortgage Bonds

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American International Group Inc. cut municipal-debt holdings by about $5 billion and added mortgage bonds as Chief Executive Officer Robert Benmosche reshapes the insurer’s $249.4 billion fixed-income portfolio.

The municipal-bond portfolio fell to $39.3 billion on June 30 from $43.8 billion three months earlier, led by declines in holdings tied to New York and California, AIG said in a regulatory filing yesterday. Residential mortgage-backed securities jumped 21 percent to $31.4 billion.