Called to Account: GE shocks market with multibillion-dollar loss in legacy reinsurance business

General Electric Co. shares were sharply lower Monday, after the company announced a fourth quarter after-tax charge of $6.2 billion and a $3 billion cash capital contribution to its insurance subsidiary that will grow to $15 billion by 2024.

On a call with analysts, GE Chief Executive John L. Flannery said he was “deeply disappointed at the magnitude of the charge” in the company’s legacy reinsurance portfolio.

Read:GE’s stock sinks after unveiling $6.2 billion charge in Q4

GE’s North America Life & Health is the reinsurance portfolio that the company retained after mostly exiting the business between 2004 and 2006.

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