OVERLAND PARK, Kan.--(BUSINESS WIRE)--Nov. 6, 2003--GE's Employers Reinsurance Corporation (ERC) today announced a strategy to focus on selected markets and products to create a smaller, higher return life and health reinsurance business. ERC will focus its Global Life & Health unit on life and health reinsurance in Europe and accident and health reinsurance in the United States.
ERC will cease writing new life reinsurance in the United States, and will no longer offer life and health reinsurance products in Canada, Latin America and Asia Pacific.
In the United States, ERC's product lines will include accident, health, disability, long-term care and behavioral health reinsurance.
In Europe, the company will continue to offer clients a full line of life, accident, health, disability and long-term care reinsurance products through its offices in London, Munich, Paris, Madrid, Milan, Copenhagen, Athens, and Folkestone, U.K.
Our U.S. accident and health reinsurance clients and our European life and health reinsurance clients will continue to have access to a wide array of specialized products and services provided by some of the industry's top experts, said Ron Pressman, GE ERC chairman, president and CEO. By focusing on these select products and regions, we will be creating a sustainable, customer-focused business that generates strong returns.
The strategic changes will lead to a reduction of 90 positions around the world during the next eight months. GE ERC is providing all those affected with a comprehensive package of severance and career transition assistance.
ERC's Global Life & Health unit represents about 25 percent of the company's net written premium. ERC also offers property and casualty reinsurance through its ERC Global Property & Casualty unit as well as commercial property and casualty insurance through its GE Commercial Insurance unit. The announcement has no impact on those businesses.
GE's Employers Reinsurance Corporation (NYSE: GE) is a company that protects lives, property and reputations. ERC serves clients with reinsurance and commercial insurance and other risk management services. More information on ERC is available at www.ercgroup.com.
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CONTACT: GE Employers Reinsurance Corporation
Dean Davison, 913-676-5147
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John Novaria, 913-676-5762
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Paul Casey, +44 (20) 7337-9597
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Jeff Wilson
GE Capital Corporate Finance
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