FAIRFIELD, Conn.--(BUSINESS WIRE)--June 12, 2006--General Electric Company (GE) announced today it has completed the sale of its Insurance Solutions business, including Employers Reinsurance Corporation (ERC), to Swiss Re for $7.8 billion in cash and securities plus the assumption of $1.7 billion in GE Insurance Solutions Corporation debt.
GE received $5.4 billion in cash and 33.3 million shares of Swiss Re common stock. As a result of the transaction, GE will own a 9% percent stake in Swiss Re.
GE Insurance Solutions offers a wide variety of reinsurance and commercial insurance products and services to insurance companies, corporations and professionals. The company operated with 2,500 employees in 50 offices in 22 countries. The operating companies among those included in the transaction are: Employers Reinsurance Corporation, GE Frankona Reinsurance Limited (UK), GE Frankona Ruckversicherungs-Aktiengesellschaft, GE Reinsurance Corporation, Westport Insurance Corporation and First Specialty Insurance Corporation.
GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Caution Concerning Forward-Looking Statements
This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices, from future integration of acquired businesses, from future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation and healthcare industries, from unanticipated loss development in our insurance businesses, and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Contacts
General Electric, Fairfield
Peter O'Toole, 203-373-2547 (office)
203-912-3233 (mobile)
peter.o'[email protected]