NU Online News Service, Feb. 4, 12:02 p.m. EST
Zurich, Switzerland-based insurer ACE Ltd. reported that fourth-quarter net income rose 5 percent, breaking the $1 billion mark in a quarter for the first time.
ACE reported net income rose $48 million to more than $1 billion in the quarter. Earnings per share rose 11 cents to $2.92 a share. The results were in part based on an increase in gross premium written of 1 percent, or $58 million, to $4.5 billion.
The combined ratio rose slightly by 0.7 points to 90.3.
For the year, the company said net income grew 22 percent, or $559 million, to $3.1 billion, or $9.11 a share. Gross premium written rose slightly less than 2 percent, or $347 million, to $19.5 billion. The combined ratio for the year increased 1.9 points to 90.2.
During a conference call with financial analysts, Evan G. Greenberg, chairman and chief executive officer of ACE, called the results "a very good fourth quarter that contributed to an excellent year," noting that this was the first quarter in the company's history where the net income exceeded $1 billion.
He went on to say that the results were especially great given the challenges of the continued soft market and economic conditions.
Property and casualty business was down 6 percent due to catastrophes, but the accident and health business increased 5 percent, underscoring the company's strategy to diversify its business.
Mr. Greenberg said the company is working to shed itself of high loss business, while retaining better underwritten business.
He said the industry is experiencing a typical soft market cycle, noting that the United States, Bermuda and London are more competitive than the rest of the world.
"These conditions will likely be with us for some time," he said.
"I am quite optimistic for the coming year, and barring any unforeseen events, we expect 2011 to be a very good year for ACE," Mr. Greenberg said.
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