Is industry giant GE really planning to spin off its insurance and reinsurance operations? That’s the question doing the rounds in New York as rumours surface that the multi-tentacled company is planning to spin off Employers Re, a subsidiary regarded as important – if not vital – to GE’s bottom line. Employers Re is the second-largest reinsurer in the US, and also holds about 2.5% of the world’s reinsurance premiums.

Standard & Poor’s has asked for details, fearing a spin-off would damage the reinsurance company’s AAA rating by bringing uncertainty to the senior management placements and the need to shift credit facilities. Other subsidiary insurance operations would also be affected, S & P’s said. Stay tuned.