AIG Is Target of Grand Jury Investigation NEW YORK (Reuters) - American International Group Inc., the world's largest insurer by market value, said on Thursday it was the target of a federal grand jury investigation into products that prosecutors say were concocted to help companies manage their earnings. The grand jury probe comes shortly after New York Attorney General Eliot Spitzer charged broker Marsh & McLennan Cos. Inc. with colluding with AIG and other insurers to fix insurance prices. AIG is also the subject of investigations by the U.S. Justice Department and the Securities and Exchange Commission into the creation of special purpose entities for PNC Financial Services which kept bad loans off the bank's books. AIG shares fell about 3 percent before the bell to $55.95 on the INET electronic brokerage system. In a statement AIG said the U.S. attorney for the Southern District of Indiana had informed the company that the investigation was looking into "non-traditional insurance or income-smoothing products marketed by AIG that were directed at creating agreements with businesses that would appear to be insurance and accounted for as insurance but did not involve any actual risk transfer." AIG said the matter, which focuses on products it sold to cell phone distributor Brightpoint Inc. was settled with the SEC in September 2003. AIG also reported higher quarterly profits early on Thursday, despite expensive claims from four U.S. hurricanes, but profit pulled short of market estimates. Quelle "AIG Is Target of Grand Jury Investigation" : reuters.com Main page for "AIG Is Target of Grand Jury Investigation"