NEW YORK (Bloomberg) - American International Group Inc. (AIG) head Robert Benmosche, who halted the auction of an investment advisory unit, told employees he will rebuild businesses and will not be rushed by the US into selling assets at unfavorable prices.

"I don't liquidate things, I build them," Mr. Benmosche said during an August 4 town hall-style meeting for employees, according to a recording obtained by Bloomberg. "When we get the fair value for those businesses, that's when we're going to sell them; it's not going to be before."

Mr. Benmosche, named CEO this month, may diverge from the course set by predecessor Edward Liddy to repay loans within AIG's $182.5 billion bailout. Mr. Liddy told staff his first week on the job last year that he planned to divest units before they lost value, and then delayed his plans as the credit crisis hobbled potential buyers' ability to make bids.

The insurer has announced about $9.3 billion in asset sales since its September rescue and still owes more than $40 billion on a Federal Reserve credit line. After more than $100 billion in net losses since 2007, AIG posted a $1.82 billion second- quarter profit this month as investment losses narrowed, allowing Mr. Benmosche more time to sell assets, he said.

"I had the luxury to say to the government, I'm not going to rush to do this," Mr. Benmosche said. "I'm appalled at how much pressure has been put on all of you to just sell it no matter what, because the Fed wants out, or the Treasury wants out. If they want out in a hurry, they shouldn't have come in in the first place."

Meg Reilly, a spokeswoman for the Treasury, and Deborah Kilroe of the New York Federal Reserve didn't immediately return calls seeking comment.

AIG, which operates in 130 countries and owns property- casualty and life insurance operations, a plane leasing unit and consumer lender, is "too big" and "too interconnected", Mr. Benmosche said. He will evaluate all of AIG's businesses over the next few weeks to decide which should be kept. Christina Pretto, an AIG spokeswoman, declined to comment on the speech.

lAmerican International Group Inc. (AIG) customers with homeowners' insurance policies accused the company in a lawsuit of denying coverage for losses suffered in Bernard Madoff's Ponzi scheme.

The suit was filed on Wednesday in Manhattan federal court by Robert and Harlene Horowitz of Los Angeles, who had homeowners' policies through AIG subsidiaries and who lost money in the Madoff scandal. They say AIG won't pay for their losses "even though the Madoff fraud is covered by the policies".

Other insurers have also fielded Madoff-related claims. XL Capital Ltd. has received 36 claims tied to Madoff's Ponzi's scheme, David Duclos, who heads insurance operations at the company, said on July 29. XL has adequate reserves, he said.

The Horowitz Family Trust had a balance of $8.5 million reflected in its November 30 statement from Bernard L Madoff Investment Securities (BMIS).

The AIG suit seeks class action, or group status, and unspecified damages.

"The total of the amounts listed in the final November 30, 2008, BMIS statements is therefore the covered loss sustained by plaintiffs and class members," according to the complaint.

Christina Pretto, a spokeswoman for New York-based AIG, did not have an immediate comment.

Madoff, 71, pleaded guilty in March and was sentenced on June 29 to 150 years in prison for paying earlier clients with money from new investors. The con man's Manhattan apartment and other luxury items were seized by US Marshals and will be sold to repay victims.