January 24, 2018 / 2:42 PM / in a year

General Electric says U.S. securities regulator probing insurance charge

The ticker and logo for General Electric Co. is displayed on a screen at the post where it is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. on June 30, 2016. REUTERS/Brendan McDermid/Files

(Reuters) - General Electric Co’s chief financial officer said on Wednesday the U.S. Securities and Exchange Commission is investigating a recent insurance charge made by the company.

GE said last week it would book a $11-billion charge in the fourth quarter, including $6.2 billion related to insurance reserves. The insurance charge was double what GE had warned last year.

“We’ve been notified by the SEC that they are investigating the process leading to the insurance reserve increase and fourth quarter charge, as well as GE’s revenue recognition and controls for long-term service agreements,” CFO Jamie Miller told analysts on a call after announcing earnings earlier on Wednesday. “We are cooperating fully with the investigation, which is in very early stages.”

Reporting by Alwyn Scott; Editing by Bill Rigby

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