RALEIGH, N.C.--Sept. 26, 2003--GE Mortgage Insurance today announced its intention to manage and operate its domestic business in the future at capital levels consistent with 'AA/Aa2' credit ratings.
In the United States, GE Mortgage Insurance is currently rated 'AAA' by Standard & Poors and Fitch, and 'Aaa' by Moody's.
The company made the decision after an extensive strategic review and analysis of its business and capital structure in light of customer and investor requirements, as well as the competitive landscape.
This review confirmed that operating at 'AA/Aa2' levels would allow GE Mortgage Insurance to run its business with improved capital efficiency and return on equity, while still maintaining a conservative risk-to-capital ratio.
As a consequence, GE Mortgage Insurance decided, after consultation with the rating agencies, to make the move to 'AA/Aa2.'
In today's competitive market, it simply makes sense for us to use our capital as efficiently as possible. By operating at the 'AA/Aa2' capital levels that prevail in the industry, we can free excess capital to improve our return on equity while aggressively filling the needs of our lenders, investors and the low down payment market, said Tom Mann, president and chief executive officer of GE
Mortgage Insurance.
Our ability to pay claims will remain strong, as will our commitment to the industry and the home buyers it serves. GE Mortgage Insurance (web site www.gemortgageinsurance.com) is part of GE Insurance, a global family of insurance and reinsurance businesses with $13.6 billion in premiums and assets of $188 billion.
GE Insurance provides life insurance, retirement income products, property and casualty insurance, risk prevention services and mortgage insurance. GE Insurance is part of General Electric Company, a diversified services, technology and manufacturing company with operations worldwide.
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CONTACT: GE Mortgage Insurance
Terry Souers, Vice President, Public Relations
+1-919-846-4459,
[email protected]
Web site: http://www.gemortgageinsurance.com/
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340