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General Electric receives SEC subpoena

General Electric Co. said Monday that it has received a subpoena related to a Securities and Exchange Commission investigation of finite-risk insurance products.
/ Source: The Associated Press

General Electric Co. said Monday that it has received a subpoena related to a Securities and Exchange Commission investigation of finite-risk insurance products.

GE said the subpoena is general and asks for documents relating to "certain loss mitigation products."

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GE said it understands a number of other insurance and reinsurance companies have been subpoenaed as part of the finite-risk investigation.

Finite-risk and other reinsurance products are often used by insurance companies to share risk.

One GE business, GE Insurance Solutions, "has made limited use of reinsurance with finite characteristics to manage the risks of catastrophic events such as storms or hurricanes, and to protect itself and GE shareholders from the volatility that is inherent in its business," according to a news release from the company.

GE said its corporate audit staff and outside auditor have conducted numerous reviews of the agreements. GE is confident the agreements have been properly structured, accounted for and disclosed, according to the news release.

GE received the subpoena last week and said it is cooperating with the investigation.