(by Ameli Berksman)

American International Group Inc. (AIG), the world’s biggest insurance group, said in a statement it may face a legal action from SEC on violation securities laws.

SEC now conducts an investigation on possible violations within AIG’s transaction with PNC Financial Services Group back in 2003. "The PNC transactions were the subject of an SEC action against PNC in 2002, and were terminated early the next year," said AIG in its statement.

AIG considers the action to be unjustified.