GE Stock Slumps After $6.2 Billion Insurance Charge
General Electric shares slumped after the company announced a $6.2 billion charge it would take related to an old insurance portfolio. GE said it will inject $15 billion into North American Life & Health over seven years.
In a press release, CEO John Flannery said, “At a time when we are moving forward as a company, a charge of this magnitude from a legacy insurance portfolio in run-off for more than a decade is deeply disappointing.”
CNBC reports in an investor call, Flannery also added, "Our results over the past several years including 2017 and the insurance charge only further my belief that we need to continue to move with purpose to reshape GE. We will continue to rigorously review our alternatives to deliver shareholder value, and report out to you as we make progress this spring."