Electric Insurance Company announced in 2021 as part of a major corporate restructuring, will sell their personal lines portfolio to Plymouth Rock Assurance as part of their major corporate restructuring and separate into three public companies.
Established to provide employee health insurance at General Electric (GE), the company now sells home and auto policies as well. Backed by strong finances and an A rating from AM Best, their operations boast strong financial strength.
GE Capital U.S. Holdings Inc.
GE Capital U.S. Holdings Inc offers financial services through a global network of subsidiaries. These include commercial lending and leasing, equipment financing, consumer finance products such as credit cards and personal loans as well as mortgages and real estate finance, bankcard issuing and acquiring, cash flow management services and fleet financing solutions for businesses – to name just some examples. In addition, there is also an impressive array of insurance products offered.
Electric Insurance was originally founded to service General Electric employees’ auto insurance needs in 1966. Since then, Electric Insurance has evolved into a large privately owned property/casualty insurer operating across all states except New Jersey with an A rating from AM Best and offering various coverage options such as comprehensive, collision, personal injury protection (PIP) and personal accident coverage (PA.P). They also provide discounts such as standard anti-theft/lock brake discounts as well as offering employees of GE an exclusive 10% discount.
In 2021, the Company posted total written premiums of $224.9 million and operates two wholly-owned subsidiaries: Elm Insurance Company and Electric Insurance Agency LLC. Elm Insurance Company was formed as a Vermont captive captive and provides the Company with management, accounting and other services. Furthermore, Electric Insurance Agency, LLC operates out of Canada where Elm Insurance Company assumes liabilities associated with commercial direct auto policies as well as general liability and excess policies issued from their Canadian branch.
The Company’s financial statements reflect the consolidation of financial results of all of its subsidiaries and affiliates, while its investment portfolio is overseen globally by GE Asset Management team, who specialize in risk management across investments to maximize return on invested capital while decreasing risks across markets conditions.
Despite today’s challenging economic environment, the Company’s investment portfolio has performed exceptionally well over recent years. Even after taking into account declining interest rates, its value increased substantially and generated strong returns and dividends payments for shareholders.
In January 2024, General Electric (GE) completed its planned corporate reorganization by selling their personal lines business to RiverStone International – an insurance operations management specialist specializing in discontinued policies – as part of a larger corporate reorganization that has been ongoing since 2021 and should be complete by 2024 when they split into three standalone entities focused on energy, aviation and healthcare respectively.
RiverStone International
Electric Insurance offers a broad selection of home and auto insurance policies from which you can choose, providing multiple ways for you to protect your property. Homeowner Plus, Premier Choice and Signature Choice policies all provide different levels and features of protection; Signature Choice in particular provides guaranteed replacement cost coverage and cash settlement options that other homeowners insurance providers charge extra for.
Electric offers more than home and auto insurance; they also provide personal umbrella, rental property, flood, condo and renter’s policies as well as personal umbrella. Their homeowners policy offers coverage for liability, personal property and loss of use if your house is damaged; condo insurance covers your building as well as personal belongings such as furniture; roadside assistance includes jump starts, towing and flat tires as well as miscellaneous services such as roadside assistance coverage.
The company has not experienced any unusual litigation with policyholders and claimants regarding claims, and its claims practices have generally been satisfactory. Claim reserves have been maintained at adequate levels and payments made on time; its financial strength rating stands at A (Excellent). A+ ratings were assigned.
RiverStone International is a premier acquirer and reinsurer of legacy and discontinued insurance business, operating across the UK, Lloyd’s of London markets and Bermuda. Since 2003, they have completed various deals, from portfolio transfers to full company purchases; recently their focus has been acquiring North American businesses.
The company’s strategy is to lay a firm foundation for future expansion through acquisitions and the expansion of existing products. Furthermore, the company actively explores opportunities to diversify its insurance and reinsurance business portfolio; previously acquiring non-core commercial and captive liabilities.
Plymouth Rock Assurance will replace auto and homeowner’s policies for approximately 90% of Electric’s policyholders and 35% of umbrella policyholders, in addition to providing support services for Electric’s 45 yacht insurance clients who may require new coverage.
GE Capital Insurance Holdings LLC
GE Capital Insurance Holdings LLC is an insurance provider offering personal and commercial lines of coverage. Their specialty lies in auto, home, and excess liability coverage which they sell directly or through independent agents or online marketing channels. Furthermore, the company also offers various supplemental offerings.
GE Capital Insurance’s services span beyond commercial and personal lines of business to include workers’ compensation coverage for its parent company employees, which plays a significant role in its financial stability. Furthermore, this line of business contributes significantly to its strength with AM Best rating it A+ (Excellent).
GE Capital Insurance is an insurer, reinsurer and claims handler for many GE insurance programs in various countries and territories worldwide. They pride themselves on their exceptional service delivery as well as being innovative within their industry.
Personal lines of business for General Electric employees include auto, homeowners and umbrella insurance policies with approximately half of premiums coming from current or former GE employees. Commercial offerings include workers’ compensation, commercial automobile liability and general liability policies which are written on an retrospectively rated basis.
GE Capital Insurance operates two wholly-owned subsidiaries: Elm Insurance Company and Electric Insurance Agency LLC. Elm was formed as a Vermont captive insurer in 1983 to provide management, accounting, loss reserving and other services for GE’s benefit. They have an agreement in place for services agreements between themselves to facilitate loss reserving services through Elm.
In the past, GE Capital Insurance was one of the most sought-after car insurers among customers due to its outstanding customer service and affordable prices. Unfortunately, in recent years it has been eclipsed by other providers with similar offerings despite its poor ratings GE Capital still has a modest capital position and steady cash flow; its largest subsidiary Employers Reassurance Corp was hit hard by coronavirus outbreak, and therefore performs subpar.
GE Capital Insurance Company
GE Capital Insurance Company offers various auto coverage options, such as liability, new car replacement and gap. They also offer extras like towing coverage, OEM coverage and trip interruption protection. Customer service can be reached via phone, email or online chat while their website features a quote tool allowing customers to compare rates across several insurers.
AM Best has given it an A (Excellent) financial strength rating and A+ issuer credit rating; these ratings reflect various aspects such as its financial strength, operating performance, business profile and risk management in addition to market position and stability of outlook.
The Company holds licenses in all 50 states, the District of Columbia, Puerto Rico and Canada, offering personal lines such as automobile, homeowners and umbrella coverage to current or former GE employees primarily as ongoing personal lines insurance policies. Commercial lines GE accounts can access include workers compensation coverage as well as commercial automobile and general liability. Their strong balance sheet, conservative reserving practices and investment income ratings demonstrate its stability.
RiverStone International announced it has successfully acquired Electric Insurance Company and its two subsidiaries Elm Insurance Company and The Electric Insurance Agency from General Electric as part of a major corporate restructuring initiative announced earlier in 2021. General Electric plans to spin off their insurance operations into three publicly listed companies focused on aviation, energy and healthcare operations.
Since 1966, General Electric employees have relied on General Insurance Group as their insurer of choice. Now known as AM Best’s A+ insurer rating and with low rates compared to other insurers reported by Bankrate, their policies continue to provide excellent protection for GE employees and their dependents.
While this company enjoys solid financial standing, their claims processing has not always been up to par. Over the years, the Better Business Bureau has received multiple complaints, such as problems with rental reimbursement. Furthermore, customers may experience difficulty in getting repairs on their vehicles; sometimes this required waiting over one year for claims processing to occur.