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 email@example.com
(END) Dow Jones Newswires
January 16, 2018 07:17 ET (12:17 GMT)