Fourth Quarter Makes ACE ?Preeminent' Brags CEO
By Michael Ha
NU Online News Service, Feb. 6, 9:33 a.m. EST?ACE Limited reported a return to profitability for its 2003 fourth quarter, compared to a loss a year ago when it took a $354 million charge to boost reserves for asbestos-related claims.[@@]
"The record results of 2003 reflect the significant earnings power that ACE has built up over the last three years," said ACE Chief Executive Officer Brian Duperreault. "With annual net income substantially in excess of $1 billion, ACE has established a preeminent presence in the global property-casualty insurance industry.
"As we look ahead to 2004, we view our prospects for further growth with continued optimism."
The Bermuda-based insurer's fourth-quarter net income came in at $421 million, improving from a loss of $168 million from the 2002 fourth quarter.
For the full-year 2003, net income was a record $1.4 billion, improving from $77 million in profit for the prior year. The insurer's net premiums written for the year increased 27 percent to $10.2 billion, which reflects property-casualty net premium growth of 40 percent for the year, the company said.
The p-c combined ratio of premium against claims and expenses for the year was 91.1 percent, improving from 103 percent during 2002. ACE global reinsurance net premiums written also increased, up 58 percent, with a combined ratio of 75.7 percent for the segment.
Net investment income also improved for the year, up 7 percent to $861 million for 2003. Overall, the return on equity for 2003 was a record 15.8 percent, ACE said.
"We had a record year. That continued in the fourth quarter, and that record was probably in every phase of financials, whether it's premiums, profit, cash flow, book value, all of them are at all-time highs for us," Mr. Duperreault told National Underwriter.
ACE Limited sells property-casualty insurance and reinsurance in the United States and about 50 other countries through its subsidiaries.
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