NU Online News Service, July 27, 11:01 a.m. – General Electric Company, Fairfield, Conn., says it will be splitting its GE Capital unit into four separate divisions Aug. 1 to make GE easier to run and easier for investors to understand.
GE Capital Services Inc. and GE Capital Corp. will continue to be the legal entities responsible for raising the capital used to finance the financial services businesses, GE says.
But, for day-to-day management purposes, GE will now run the businesses through the GE Insurance, GE Commercial Finance, GE Consumer Finance and GE Equipment Management units.
Michael Fraizer, previously president of the GE Financial Assurance life insurance operation, will be president of GE Insurance. GE Insurance will control $170 billion in assets and manage Employer’s Reinsurance Corp., Financial Guaranty Insurance Company and GE Mortage Insurance as well as GE Financial Assurance.
Ron Pressman will continue to run Employers Re, GE says.