Home / Compliance / SEC Investigating GE Over Insurance Losses

SEC Investigating GE Over Insurance Losses

magnifying-glass-leaning-against-stack-of-papers-picture-id1208620496

October 20, 2020

In an Oct. 6 filing, GE disclosed that it had received a Wells Notice from the SEC warning the company that it plans to bring an enforcement action over the handling of its insurance portfolio. GE had earlier disclosed that the SEC was investigating insurance losses of $6.2 billion. The Wells notice advised GE that a civil enforcement action for potential violations of securities laws is in the works. Back in January 2018, GE reported a $6.2 billion loss in its portfolio of long-term care insurance. Those policies protect against nursing home and assisted living costs. They have been hurt by rising healthcare costs and longer life expectancies. At the time GE warned that it would devote $15 billion to boost insurance reserves, which prompted the SEC’s investigation. The SEC may have determined GE was low-balling the amount of money the insurance contracts could lose over time, which would explain why investors were caught off guard by the magnitude of the 2018 losses.

Read full article at:

Share this post:

Do NOT follow this link or you will be banned from the site!