KANSAS CITY, Mo.--(BUSINESS WIRE)--April 4, 2005--GE Insurance Solutions Corporation chairman, president and CEO Ron Pressman commented today on Standard & Poor's financial strength rating of "A" with a stable outlook. Standard & Poor's action follows last week's announcement that A.M. Best affirmed its "A" rating on operating subsidiaries of GE Insurance Solutions.
(See full text of Standard & Poor's announcement at www.geinsurancesolutions.com.)
"We are pleased that Standard & Poor's acknowledges the tremendous strength of our investment portfolio, our AA-capital level, our strong market presence and GECC's substantial support," said Pressman. "We have and will continue to constructively address issues raised by the rating agencies while meeting our commitment to provide our clients with long-term security and deep, practical risk expertise."
GE Insurance Solutions has implemented a capital improvement plan that includes a $350 million increase in cash capital from GE Capital Services as well as a commitment from GE Insurance Solutions Corporation to provide additional tangible capital support by the end of the third quarter of 2005. The company will continue to pursue opportunities to reduce required capital via strong balance sheet management and selective dispositions.
The plan also includes capital maintenance agreements for GE Insurance Solutions Corporation operating subsidiaries with General Electric Capital Corporation (GECC). Under those agreements, GECC provides explicit support to ensure that the risk-adjusted capitalization of these companies will be maintained on a continuing basis at a superior level.
Pressman noted that this capital improvement plan builds on the company's capital position, which is already at its highest level in history with $7.4 billion in statutory capital as of Dec. 31, 2004. GAAP capital is at more than $8.2 billion, also the highest in the company's history. With $52 billion in combined assets including a $32 billion investment portfolio with 90% invested in "A-rated" or higher bonds, GE Insurance Solutions remains one of the strongest, highest capitalized reinsurers and commercial insurers in the world.
"This plan reflects our continued long-term commitment to our clients, investors, employees, and our industry," Pressman added.
GE Insurance Solutions (NYSE: GE) is a group of companies that protects people, property and reputations. With $52 billion in combined assets, GE Insurance Solutions is one of the world's leading providers of commercial insurance, reinsurance and risk management services. More information is available at www.geinsurancesolutions.com.
Contacts
GE Insurance Solutions
Dean Davison, 816-448-7604
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John Novaria, 816-448-7608
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Andrea Pound, +44-207-337-9639
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Jeff Wilson
GE Capital Corporate Finance
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