General Electric has been ranked as one of the riskiest long-term care insurers days after being accused of hiding $29 billion in losses related to its LTC insurance business.
Fitch Ratings ranked GE as second on its list of the 16 riskiest LTC insurers, according to a report by Reuters. Genworth Financial Inc., Unum Group and Senior Health Insurance Co. of Pennsylvania were also named on the list and said to have “below average reserves” and “very high exposure” to long-term care.
Analyst Anthony Beats told the news agency GE was high on the list because “because it has mostly older policies written when the costs of long-term care were poorly understood.”
“When you compound all of that together, (GE’s portfolio) looks much riskier than what the rest of the industry maintains,” Beato said in the report.
GE recently defended itself against after being accused of committing a total of $38 billion in accounting fraud. Vice President of Investor Relations Steve Winoker said the company operates with “absolute integrity and stands behind our financial reporting.”