Power Failure: The Rise and Fall of an American Icon

by William D. Cohan

As a reminder, as part of the 2004 IPO of Genworth, Jeff decided to retain a small insurance subsidiary, Union Fidelity Life Company, or UFLIC, which was in the business of providing insurance to cover the costs associated with long-term health care, nursing-home care, and home health care. In December 2005, Jeff also retained at GE something called Employers Reassurance Corporation, or ERAC, from the $7 billion sale of Employers Re to Swiss Re. ERAC was in the business of reinsuring term life insurance policies. After the Genworth IPO, UFLIC stopped writing new policies and was responsible for managing the policies already written—continuing to take in premiums, managing that money, and paying out claims.