GE Aerospace (GE)

[LOVE*PINK]

$6.2 Billion Insurance Charge

Even the first few weeks of 2018 set the year off on the wrong foot for GE. In January, Flannery revealed a $6.2 billion insurance charge which the company had previously not foreseen. This charge came about because of GE Capital's reinsurance liabilities, and it is unfortunately not the last time that these liabilities will impact the company. In fact, GE Capital is likely going to need to allocate about $15 billion to fund these liabilities through 2025. The impact of this is enormous: GE's dividend payments will likely suffer as a result of a lack of support from the company's Capital arm.