AIG "carried Bermuda on its shoulders" during the formative days of the Island's international business boom, former Premier Sir John Swan said yesterday.

In the week the insurance giant declared a third-quarter loss of more than $24 billion and the US Government poured more money into the ailing company, Sir John stressed AIG had provided great opportunities for many Bermudians.

"What has happened to AIG recently is sad but we should always remember what this giant of a company meant to Bermuda in not only reinsurance, but they were also the catalyst for many companies setting up business in Bermuda and providing capital to fuel the Island's growth," Sir John said. "This has resulted in a great many opportunities for Bermudians."

Sir John said that in the 1980s, the support of AIG, in particular its then president Joe Johnson and legal counsel Mike Murphy, had helped Bermuda to secure a tax convention agreement with the US, which sparked "the economic engine that has mostly carried Bermuda for the past 20 years".

"I thought inasmuch as I was involved in that process, I should give recognition to that giant of a company, AIG, that helped carry Bermuda on its shoulders," Sir John said.

"They have been, and remain, our partners, and we should wish them much success as they seek solutions to their dilemmas. In redefining themselves in order to save themselves, perhaps, they can again help show us the way forward."

AIG continues to employ around 200 people on the Island.