The American International Group said that Edward M. Liddy was stepping down as chairman and chief executive of the troubled insurance conglomerate.

Mr. Liddy, who was brought in last fall to lead A.I.G. through a major restructuring after it was bailed out by the Federal Reserve, intends to stay on until the company picks his successor, A.I.G. said. Representatives of the Fed will participate in the search. The company has received more $180 billion in bailout assistance from the federal government.

Mr. Liddy has recommended that the company separate the position of chairman and chief executive into two separate posts, something often recommended by corporate governance specialists.

Mr. Liddy emerged from retirement to take over A.I.G. immediately after the bailout last September and has worked on a voluntary basis during tough times. He has struggled to execute a plan to sell off A.I.G.&S217;s operating units to raise enough money to pay back the Fed, and been grilled by hostile members of Congress who have sometimes seemed to blame him for the company&S217;s near-collapse.

In a statement, Mr. Liddy acknowledged that progress on the restructuring has been slow, but said that the pace was dependant on global economic conditions.

&S220;It is likely to take several years,&S221; he said. &S220;A.I.G. should have a leadership team committed to a similar time horizon and prepared to carry the plan to completion.&S221;

A.I.G. Chief, Brought in During Bailout, to Leave