and premiums charged by one of America's largest companies, the American International Group.

The insurance conglomerate, which employs more than 100 people at its captive management business in Bermuda, did not issue any comment yesterday.

It was unclear how the move would affect, if at all, the company's Bermuda operation, which is located at Richmond Road, Pembroke.

The head of the Bermuda operation, Sen. Joe Johnson, said: "I can't really tell you. I really don't know at the moment. I know nothing more than what's been written in news reports.'' The freeze against AIG, which insures property and casualty, will be in effect for 60 days.

A hearing has been scheduled as part of Florida's investigation into the company's rate-setting practices.

Mr. Tom Gallagher, the state's insurance commissioner, said in a statement that his move came in response to published reports that the company used Hurricane Andrew as a chance to raise rates.

The reports quoted from an internal memorandum dated August 24, the day the storm hit, from Mr. Jeffrey Greenberg, executive vice president at AIG. In it, Mr. Greenberg wrote: "The industry cannot absorb the loss and the cash hit without increasing rates.

"Begin calling your underwriters together,'' he continued. "This is an opportunity to get price increases now.'' "AIG and all of the other companies who sell commercial property and auto insurance in Florida better get this message now: We won't tolerate any company trying to take advantage of our citizens in the aftermath of this tragedy,'' Mr. Gallagher said.

Because hurricane claims won't be gathered and settled for several months, any increase based on hurricane damage would be premature and unjustified, Mr.

Gallagher said.

Last year, Forbes magazine ranked AIG the eighth largest company in the whole of the United States, with sales of $16.9 billion, profits of $1.55 billion, assets of $69.4 billion and a market value of $19.1 billion.

The group has been active in Bermuda for 45 years and its connections with the Island extend beyond business.

The group's vice chairman, Mr. Ernest Stempel, has lived on the Island for some 40 years, commuting weekly to New York. He has three Bermuda-born children.

AIG's stock fell 37.5 cents to $94.625 yesterday in New York Stock Exchange trading.