GE Expects $6.2 Billion Charge After Reviewing Insurance Reserve
January 16 2018 - 7:32AM
Dow Jones News
By Cara Lombardo
General Electric Co. said it expects a $6.2 billion after-tax
charge in its fourth quarter after reviewing GE Capital's runoff
insurance portfolio.
GE said it also expects GE Capital to make required reserve
contributions of around $15 billion over seven years.
Chief Executive John Flannery has been working to streamline the
once far-reaching GE Capital unit and focus it on providing
financing for GE products. He expressed frustration at the review's
results while saying the actions will restore GE Capital ratios to
appropriate levels.
"At a time when we are moving forward as a company, a charge of
this magnitude from a legacy insurance portfolio in runoff for more
than a decade is deeply disappointing," he said.
GE had said last year it was reviewing its insurance reserves.
The process centered around long-term care policies written by
primary insurance companies and reinsured by GE Capital's North
American Life and Health portfolio.
GE shares slid 2% in premarket trading Tuesday.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
January 16, 2018 07:17 ET (12:17 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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