American International Group Inc. said Monday that it had received subpoenas from New York Attorney General Eliot Spitzer and the Securities and Exchange Commission regarding insurance products that may have helped companies smooth earnings.
The subpoenas, received since the world's biggest insurer reported its earnings last Wednesday, also relate to some reinsurance transactions and AIG's accounting for them, the New York insurer said. "AIG will cooperate in responding to the subpoenas," it said.
AIG, which already agreed to pay the SEC $10 million to settle a case involving alleged income-smoothing in 2003, is at least the eighth company to be subpoenaed since Mr. Spitzer and the SEC began an industry investigation last year.
Last November, AIG agreed to pay $126 million to settle investigations by the SEC and Department of Justice into its sales of finite insurance and reinsurance, also known as nontraditional insurance. Regulators are probing whether insurance companies sold nontraditional policies that acted as disguised loans and allowed customers to mask losses.
