NEW YORK (Bloomberg) ? Frank Zarb, who took charge of American International Group Inc. during an accounting probe earlier this year, has been asked to extend his chairmanship as the world?s largest insurer grooms potential successors.

Arthur Levitt, the former chairman of the US Securities and Exchange Commission who?s helping AIG recruit directors, asked the interim chairman to stay on into 2006, Levitt said in an interview. Zarb, who declined to comment on his plans, had requested earlier that the board seek a replacement before the end of the year.

?Frank has been such a positive force for reform that I would not like him to leave that position until we have an experienced person with a proven track record,? Levitt said. With the extra time, New York-based AIG ?would be able to develop a bullpen of both existing and new directors from whom the board could choose a successor,? he said.

Zarb, 70, last month pledged AIG would work with regulators as it aims to settle an accounting fraud lawsuit brought by New York Attorney General Eliot Spitzer. Zarb replaced Maurice (Hank) Greenberg as interim chairman in March, helping to appease Spitzer and stem a decline in the company?s shares that wiped out more than $40 billion of market value. Under Zarb?s direction, AIG appointed former number two Martin Sullivan to replace Greenberg, 80, as chief executive officer and restated $3.9 billion of net income, lowering earnings from the past five years by ten percent to correct improper accounting on reinsurance contracts and other transactions.