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Consumer Services
2001 was a strong year for the Consumer Services segment of GE Capital, with earnings
rising a robust 39%. Among its top-performing businesses:
Global Consumer Finance, an international leader in store cards and personal lending
products, increased earnings through organic growth, a strong acquisition pipeline
and cost management. Adding operations in Korea and Mexico, we now serve more than
40 million consumers in 33 countries. A key 2001 acquisition was igroup, a leading
British provider of home equity loans. Meanwhile, our relentless focus on risk
management and collections resulted in credit losses of less than 2.5% worldwide.
GE Financial Assurance, a leader in consumer insurance and investment products,
recorded another year of double-digit earnings growth as our diversified business
lines, core growth and strong cost reductions offset softness in global equities markets.
Wealth and income management activities grew through retirement annuities, growth in
institutional asset management, and the acquisition of Centurion Capital, which added
individual fee-based investment accounts. Our protection segments including term
life, small business benefits, and long-term care insurance expanded steadily.
We strengthened our global capabilities with the purchase of U.K. retirement specialist
National Mutual and the introduction of five new products in Japan. We also took
customer focus to new levels with 51 specific quality projects and a brand expansion
campaign using a nationwide "financial fitness" tour and new television ads.
One of America's largest providers of private-label store cards and corporate purchasing
cards, GE Card Services shrugged off a weak U.S. retail environment to deliver record
earnings. Our At the Customer, For the Customer initiative yielded $300 million in
incremental sales and a $10 million expense reduction. Card acceptance across diverse
businesses continued apace, with high-profile clients including JCPenney, ExxonMobil,
Wal Mart, The Home Depot,
Sam's Club, Macy's and Lowe's.
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