General Electric Co said on Thursday its current reserves for long-term care ins...
NEW YORK - General Electric Co said on Thursday its current reserves for long-term care insurance policies were sufficient and it was looking to increase premiums to cover their rising cost.
GE shocked investors when it took a surprise $6.2 billion after-tax charge last year and began setting aside $15 billion - one of the largest such amounts ever - to cover the policies, which were underwritten more than a decade ago when actuaries did not yet know how costly the claims would become. Since last year, GE has reduced the total amount of insurance reserves it plans to set aside to $14.5 billion by 2024 after completing an analysis of the policies.
GE also said it was putting more of its insurance assets into investments with higher yields. It said it currently invests about 2 percent of assets that way, compared with 12 percent for other insurers. It aims to lift that to 8 percent by 2024, it said.
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