ACE Reports 81% Jump In Quarterly Profit

ACE Reports 81% Jump In Quarterly Profit

NU Online News Service, April 29, 10:37 a.m. EDT?The Bermuda-based insurer ACE Ltd. reported $447 million in net profit for its first quarter, an 81 percent rise from $247 million in income reported during the corresponding period in 2003.[@@]

ACE reported that its net premiums written for the quarter rose 11 percent to $3.24 billion, reflecting property-casualty net premium growth of 26 percent.

The p-c combined ratio also improved during the first quarter, down to 88.4 from 90.6 reported one year earlier. The company's overall net investment income rose 16 percent to $238 million, ACE said, reflecting p-c net investment income growth of 19 percent.

Looking at individual business units, the ACE North American segment reported that its net premiums written rose 30 percent to $1.21 billion, with the combined ratio improving to 89.4. The overseas-general segment, meanwhile, posted a 22 percent rise in its net premiums written to $1.2 billion, with the combined ratio improving to 89.3.

Additionally, the ACE global reinsurance unit saw a 28 percent jump in its net premiums written to $620 million, with a 73.5 combined ratio for the quarter, and the financial services unit reported $208 million in net premiums written, reflecting a 67.6 combined ratio.

Commenting on the company's results, Chief Executive Officer Brian Duperreault said ACE continues to make progress on every front. "We grew rapidly in our key businesses, improved our margins and strengthened our balance sheet," he said.

Mr. Duperreault also remarked that the spin-off of ACE's Assured Guaranty unit, concluded this week, puts ACE "in the strongest position it has ever been in to face new business opportunities that lie ahead."

The spin-off of Assured Guaranty from an initial public offering raised $882 million with the sale of 49 million shares on the New York Stock Exchange. ACE said the move would improve parent company ACE's balance sheet and free up funds to expand its core business as a property-casualty insurer.

ACE Limited sells p-c insurance and reinsurance in the United States and about 50 other countries through its subsidiaries. Its ACE International group offers p-c lines to personal and commercial clients around the world, while the ACE Global Reinsurance group offers catastrophe reinsurance. ACE also owns four Lloyd's of London managing agencies, while its ACE USA provides U.S. commercial and casualty insurance. For full-year 2003, the corporation reported $1.4 billion in net income.