We classified GE Life, Genworth Financial, Inc. (Genworth) and most of GE Insurance Solutions as discontinued operations. Associated results of operations, financial position and cash flows are separately reported for all periods presented.

Sale of GE Life
In December 2006, we completed the sale of GE Life, our U.K.-based life insurance operation, to Swiss Reinsurance Company (Swiss Re) for $910 million. As a result, we recognized an after-tax loss of $267 million during 2006. GE Life revenues from discontinued operations were $2,096 million, $2,286 million and $708 million in 2006, 2005 and 2004, respectively. In total, GE Life loss from discontinued operations, net of taxes, was $178 million and $28 million in 2006 and 2005, respectively, compared with earnings from discontinued operations of $25 million in 2004.

Sale of GE Insurance Solutions
In June 2006, we completed the sale of the property and casualty insurance and reinsurance businesses and the European life and health operations of GE Insurance Solutions to Swiss Re for $9,297 million, including the assumption of $1,700 million of debt. We received $5,359 million in cash and $2,238 million of newly issued Swiss Re common stock, representing a 9% interest in Swiss Re. As a result, we recognized after-tax losses of $134 million and $934 million in 2006 and 2005, respectively. GE Insurance Solutions revenues from discontinued operations were $2,815 million, $7,451 million and $8,625 million in 2006, 2005 and 2004, respectively. In total, GE Insurance Solutions earnings from discontinued operations, net of taxes, were $148 million and $90 million in 2006 and 2004, respectively, compared with a loss of $2,850 million in 2005.

Sale of Genworth
In March 2006, we completed the sale of our remaining 18% investment in Genworth through a secondary public offering of 71 million shares of Class A Common Stock and direct sale to Genworth of 15 million shares of Genworth Class B Common Stock. As a result of initial and secondary public offerings, we recognized after-tax gains of $220 million and $552 million in 2006 and 2005, respectively, compared with an after-tax loss of $336 million in 2004. Genworth revenues from discontinued operations were $5 million, $7,908 million and $10,148 million in 2006, 2005 and 2004, respectively. In total, Genworth earnings from discontinued operations, net of taxes, were $193 million, $928 million and $444 million in 2006, 2005 and 2004, respectively.

Summarized financial information for discontinued operations is shown below.

(In millions)		2006			2005			2004
Operations
Revenues from services		$ 4,916			$ 17,645			$ 19,481
Earnings (loss) from discontinued operations before minority interest and income taxes		$ 382			$ (1,726	)		$ 1,517
Minority interest		—			394			200
Earnings (loss) from discontinued operations before income taxes		382			(2,120	)		1,317
Income tax benefit (expense)		(38	)		552			(422	)
Earnings (loss) from discontinued operations before disposal, net of taxes		$ 344			$ (1,568	)		$ 895
Disposal
Gain (loss) on disposal before income taxes		$ (75	)		$ 629			$ (570	)
Income tax benefit (expense)		(106	)		(1,011	)		234
Loss on disposal, net of taxes		$ (181	)		$ (382	)		$ (336	)
Earnings (loss) from discontinued operations, net of taxes		$ 163			$ (1,950	)		$ 559

December 31 (In millions)		2005
Assets
Cash and equivalents		$ 2,976
Investment securities		37,633
Other GECS receivables		13,915
Other		6,542
Assets of discontinued operations		61,066
Eliminations		—
Total		$ 61,066
Liabilities and equity
Investment contracts, insurance liabilities and insurance annuity benefits		$ 43,378
Other		6,385
Liabilities of discontinued operations		49,763
Eliminations		(236	)
Total		$ 49,527
Total accumulated nonowner changes other than earnings		$ 652

Accrued liabilities of $475 million as of December 31, 2006, will be settled beginning in 2007.

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