NEW YORK (Bloomberg) — American International Group Inc., the world's largest insurer, appointed former Goldman Sachs Group Inc. vice-chairman Suzanne Nora Johnson to the board to help restore investor confidence after two record losses.

Nora Johnson, 51, worked for 21 years at Goldman, retiring in 2007 as the highest-ranking woman at the firm, the New York- based insurer said yesterday. Richard Holbrooke resigned from AIG's board, the company said in a regulatory filing.

Chief executive officer Robert Willumstad is under pressure from investors including billionaire Eli Broad to bolster the company's financial leadership and reverse a 60-percent share decline this year. Willumstad, 62, replaced Martin Sullivan last month after two quarterly losses totalling $13 billion tied to the sub-prime mortgage market collapse.

"Suzanne's insights and guidance will be invaluable as AIG addresses the challenges presented by today's unsettled financial conditions," Willumstad said in a statement.

Nora Johnson's committee assignments will be determined later, AIG said today in the filing. She is a member of the boards at Intuit Inc., Pfizer Inc. and Visa Inc.

Holbrooke, 67, has been an AIG director since 2001. He is a former US ambassador to the United Nations and former vice chairman of Credit Suisse First Boston, according to an April 4 AIG filing. He is currently vice chairman of private equity firm Perseus LLC, AIG said.

Broad said June 30 he "recently" advised Willumstad to select someone the "financial community really respects on the board to chair an investment committee".

Broad, a former AIG director, said the company will bring in a "new team" to manage finances. Willumstad, who is also chairman of AIG, is searching for a new chief financial officer to replace Steven Bensinger, who was named vice chairman in May. Broad's letters to AIG urging management changes preceded the June 15 departure of Sullivan.

Broad didn't respond to a request for comment.