General Electric has sold its bond insurance arm, Financial Guaranty Insurance Company, for $1.9bn (£1.2bn) to a group of investors.
General Electric has sold its bond insurance arm, Financial Guaranty Insurance Company (FGIC), for $1.9bn (£1.2bn) to a group of investors.
Investment vehicle PMI will control 42% of FGIC, which is the third largest bond insurer in the US. FGIC guarantees bond payments for debt issuers in return for a premium.
The personal accident and travel giant had been locked in negotiations for months to sell FGIC, fulfilling part of chief executive Jeffrey Immelt's plan to divest several under performing businesses.
Immelt initiated a push last year to make sure that all the group's businesses are meeting their return on capital. Last year GE struggled to meet its targeted earnings growth, managing only 7%.
