The world's second biggest company is to launch a new financial services firm in a bid to become the UK's biggest long term care insurer.
US based General Electric Company, valued at $250bn, is launching a UK version of the largest long term care insurer in the US, GE Financial Assurance.
Next month it will merge UK subsidiaries GE Financial Assurance and Stalwart, which it bought for £43m in September 1997, to create GE Life in a move which will send shockwaves through the LTC market.
GE Life will be based in Dorking, Surrey, and retain Stalwart's 60 strong sales force. It is understood to have attempted to poach several PPP staff to recruit and develop the industry's largest IFA salesforce.
Industry insiders confirm the new firm will specialise in products for the 55-years plus age group including long term care insurance, bonds, home income plans and pension annuities.
GE Capital is desperate to make an impact in the UK LTC market after it made an unsuccessful bid to buy PPP healthcare in December 1997.
Stalwart marketing manager Cathy Horsley says: "In the autumn a new type of company will be launched that will pick up the two existing companies and focus on products for the older market."
Scottish Amicable customer service & IT director Gavin Stewart says: "It is a key area that providers and IFAs will increasingly focus on. More people developing products in this area can only be of help to IFAs."