“At a time when we are moving forward as a company, a charge of this magnitude from a legacy insurance portfolio in run-off for more than a decade is deeply disappointing,” Chief Executive Officer of GE, John Flannery said. The Company would take a charge of $6.2 billion for hte fiscal’s last quarter.
The after-tax charge will be $7.5 billion when adjusted to the rate following the recent US tax overhaul. The Boston-based company’s finance unit, GE Capital, will make statutory reserve contributions of about $15 billion over the last 7 years.
