Zurich-based ACE Ltd. said its 2010 second-quarter profit increased 27 percent to $677 million compared with last year during the same time.
Chairman and Chief Executive Officer Evan G. Greenberg said the 89.7 combined ratio posted during the second quarter points to the company's successful risk management, diversification and underwriting in the face of $81 million, including reinstatement premiums, in second-quarter catastrophe losses--more than double the amount during the prior year.
Last year at this time the insurer and reinsurer posted an 87.7 combined ratio. This year catastrophe losses added more than two points to the combined ratio in the second quarter.
ACE has taken $254 million, including reinstatement premiums, in catastrophe losses so far this year.
Property and casualty underwriting income for the company was $294 million compared with $355 million in 2009. Net written premiums were flat. Mr. Greenberg said slow economic recovery in the U.S., Europe and Japan, along with competition, impacted premium growth and will likely continue to do so "for some time."
Net investment income rose 2 percent to $518 during the second quarter compared with the same time in 2009.
