GE faces SEC probe after $15B insurance shortfall: 3 things to know

The Securities and Exchange Commission is investigating General Electric's accounting practices after the company reported worse-than-expected insurance portfolio results.

Here are three things to know.

1. After a review of its GE Capital insurance portfolio, GE announced the company would incur a $6.2 billion after-tax charge in the fourth quarter of 2017 and would pay $15 billion over seven years to shore up reserves for its insurance portfolio.

2. On Wednesday, the company said the SEC is investigating the $6.2 billion charge and the circumstances that led to the larger-than-expected insurance shortfall, according to Reuters.

3. On a conference call with analysts Wednesday, GE CFO Jamie Miller said the inquiry is in early stages, and the company is fully cooperating with the SEC's investigation, according to Bloomberg.

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