AIG announced Tuesday that it was approaching a settlement in criminal and regulatory probes that concern its sales of products used by other companies to polish financial results.

 

AIG, US top insurer in terms of market capitalization, declared it has filed two settlement offers with the SEC covering its Financial Products Corp. unit and its contracts for PNC Financial Services Group Inc. and cell phone company Brightpoint Inc.

 

Both AIG representatives and SEC spokesman declined to comment the proposed agreement.

 

The SEC is currently investigating whether AIG assisted PNC in removing bad debts of $762 million from financial statements that led to a profit overstatement of $155 million. The commission is also trying to find out if AIG products that looked like insurance but did not lead to a risk transfer indeed helped Brightpoint to cover up losses.