GE mulls sale of insurance arm

General Electric (GE) is trying to sell its insurance business by working with investment bankers.

The move comes after GE said in January it would take a USD6.2 billion after-tax charge and set aside another USD15 billion in reserves to help cover liabilities in insurance operations held by its GE Capital unit, particularly in long-term care policies, according to a report by Reuters.

GE is hoping investment firms which specialize in acquiring run-off insurance businesses could buy some of the assets, according to the report.

Many providers of LTC insurance, including GE, underestimated the cost of servicing policies, meaning premiums have been unable to cover the spiraling costs of healthcare and longer life expectancy.