We Called It: AIG's Pricing Advantage

American International Group is being probed by New York and Pennsylvania for allegedly using its government support to undercut rivals' prices -- which TheStreet.com detailed four months ago. Following is Lauren LaCapra's story, originally published March 2:

American International Group's (AIG Quote) competitors have found it more complicated than imagined to take advantage of the troubled insurance giant while its down.

The competition smelled blood in the water amid massive losses, a government bailout and a major restructuring plan. But AIG rivals are grumbling the company is using its leading position and government support as tools to drastically undercut prices. AIG declined to comment on those charges, but sources inside and outside the firm say the accusations are merely a tactic to kick the insurance giant while it's down.

Despite its struggles, AIG is still a leader in the insurance world. It holds the top position for life insurance, commercial lines and workers' compensation insurance and the No. 2 spot for property & casualty insurance, according to the Insurance Information Institute. It remains within the top 10 for passenger and commercial auto insurance. ...