Name change for GE Finance and Insurance

By GARETH VAUGHAN


GE Finance and Insurance, the local financial services arm of General Electric, the biggest listed company in the United States, is changing its trading name as it strives to raise its profile and push into the credit card market.

From today, GE Finance and Insurance will be known as GE Money. New Zealand managing director Jim Cock said it was keen to simplify its image as it strived to boost direct contact with customers.

GE Money offers loans, insurance and sales finance through 17 branches and an eftpos-based credit card through partners such as Harvey Norman and Danske Mobler. Its parent company bought Australian Financial Investment Group, owner of Wizard Home Loans, last month for about US$300 million ($438 million).

"We have 11 brands in Australia and NZ so it's all very confusing and a natural consequence of growing through acquisitions," Cock said.

"We want to be able to go to market under a single brand."

Cock said GE Money planned to expand existing product lines and enter the credit card market.

He said more acquisitions in NZ and Australia were likely.

GE Money's acquisitions have included AVCO Financial Services and Australian Guarantee Corp (AGC), this country's second-biggest finance company by assets, which it bought for A$1.6 billion from Westpac in 2002.

GE Money has worldwide assets of US$117 billion and posted an annual profit of US$2.1 billion. In NZ, excluding Wizard, GE Money has assets of more than $1.4 billion, but Companies Office records show it posted a 2003 loss of $39.5 million.

GE Money is the third-biggest division of the 11 units that comprise General Electric, a conglomerate with interests ranging from power generation to plastics and jet engines.

Follow the money

GE Finance and Insurance, which owns AGC, changes its trading name to GE Money from today.

GE Money, which recently bought Wizard Home Loans, is part of giant US conglomerate General Electric.

GE Money aims to enter the local credit card market.

More New Zealand and Australian acquisitions are likely.