NU Online News Service, Oct. 10, 2003, 5:45 p.m. EDT – The insurance operations at General Electric Company, Fairfield, Conn., are reporting $604 million in net income for the third quarter on $6.8 billion in revenue, up from $327 million in net income on $6.2 billion in revenue for the third quarter of 2002.
Total GE insurance net income is up 85%, and GE insurance revenue is up 10%.
Earnings at GE Financial Assurance, the unit that sells products such as long term care insurance, jumped 45%, to $376 million.
But General Electric says it will “continue to exit low growth/low return businesses.” General Electric lumps superabrasives and insurance together in that category in a slide presentation that discusses the company’s latest earnings.
The company as a whole is reporting $3.6 billion in net income for the third quarter on $33 billion in revenue, compared with $4.1 billion in net income on $33 billion in revenue for the third quarter of 2002.
The company cites completed efforts to sell an industrial diamonds unit, the GE Edison Life Insurance Company unit in Japan and the GE Auto & Home unit in the United States as examples of its commitment to transforming its portfolio of companies.
The insurance unit intends “to focus operations on segments with the highest growth potential ? targeted consumer retirement income and protection, selected commercial and reinsurance segments, and mortgage insurance ? while redeploying capital elsewhere in GE,” General Electric says.