American International Group has no plans to relocate some of its Bermuda-based business to Puerto Rico — despite the claims of a newspaper on the US Caribbean island.

San Juan-based daily El Vocero said AIG was considering “transferring some of its Bermuda-based captive businesses to Puerto Rico’s international insurance centre (CIS)”.

“It’s not true and we are expecting El Vocero to print a retraction,” Peter Tulupman, AIG’s New York-based public relations manager, told The Royal Gazette yesterday.

El Vocero quoted AIG Puerto Rico president Francisco D|0xed|az as saying that AIG believes CIS has considerable advantages over Bermuda, namely “a well-known regulatory environment, a legal framework supported by federal rules and a sophisticated financial system”.

AIG recently announced it would become the first insurer to start a reinsurance unit on the island through CIS.

The new company, American International Underwriters Overseas, was authorised to reinsure up to $100m in catastrophe risks.