“COVID-19 May Fix GE’s Long-Term Care Problem,” by Adam Levine-Weinberg, Seeking Alpha

Quote:

“In early 2018, GE took a $9.5 billion pre-tax charge and announced that it would have to add nearly $15 billion to its long-term care insurance reserves by 2024. Many investors have continued to worry that GE would eventually need to set aside even greater reserves. The COVID-19 pandemic appears to have sparked an uptick in long-term care policy terminations, reducing future liabilities.

With long-term care premiums rising and skilled-nursing facilities increasingly seeming dangerous, policy terminations could continue in the quarters ahead. GE stock has fallen too far in 2020.”

 

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

Remember when GE swooped into LTCI promising to increase sales by multiples? Oops. It may take a pandemic to save General Electric now.