GE Insurance Solutions To Cooperate With SEC Reinsurance Investigation
3 May 2005
General Electric today said it received a subpoena from the New York Regional Office of the Securities & Exchange Commission on Friday, April 29. The subpoena, which seeks documents relating to "certain loss mitigation insurance products," is general in nature. GE will cooperate fully with the SEC.
GE understands that a number of other insurance and reinsurance companies have been subpoenaed by the SEC in relation to finite risk. One of GE's businesses, GE Insurance Solutions, has made limited use of reinsurance with finite characteristics to manage the risks of catastrophic events such as storms or hurricanes, and to protect itself and GE shareowners from the volatility that is inherent in its business.
GE, its Corporate Audit Staff and its outside auditor, KPMG LLP, have conducted numerous reviews of these agreements during the past several years as part of the Company's intensive strategic reviews of Insurance Solutions' operations, and the Company is confident that Insurance Solutions' risk transfer agreements have been properly structured, properly accounted for with appropriate risk transfer, and properly disclosed.
GE (NYSE: GE - News) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Caution Concerning Forward-Looking Statements
2005 results are preliminary and quarterly information is unaudited. This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices, from future integration of acquired businesses, from future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries, from unanticipated loss development in our insurance businesses, and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
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Contact:
General Electric, Fairfield
David Frail, 203-373-3387
david.frail@ge.com
or
GE Insurance Solutions, Kansas City, Missouri
Dean Davison, 816-448-7604 and 913-244-9033
dean.davison@ge.com
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Source: General Electric
Source: Business Wire
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