European shares fall, led by financials; AIG weighs

FRANKFURT, Feb 11 (Reuters) - European shares fell on Monday, led by financials such as Societe Generale (SOGN.PA: Quote, Profile, Research) and Fortis (FOR.AS: Quote, Profile, Research), as credit spreads widened and investors fretted about the impact of a credit crisis on growth and earnings.

The FTSEurofirst 300 index of top European shares closed unofficially 0.8 percent lower at 1,291.96 points.

The index lost 3.7 percent last week on fears of a U.S. recession and worries that financial institutions have not yet revealed the full impact of the credit crisis on their books.

U.S. group AIG (AIG.N: Quote, Profile, Research), the world's largest insurer, on Monday disclosed that its auditors questioned the company's internal controls over its valuation of derivatives, sending its shares down more than 11 percent.

In Europe, insurance shares fell 2.7 percent on the DJ Stoxx sector index and banks fell 2.1 percent.

Shares in Societe Generale fell 4 percent after the French bank announced a rights issue at a steep discount which analysts said would dilute earnings more than expected.

European credit derivatives index spreads hit record highs earlier, driven in part by worries over the structured investment vehicle (SIV) sector and the problems at AIG. (Reporting by Peter Starck)