NU Online News Service, April 25, 10:34 a.m. EDT
Rates were up and catastrophe losses were relatively light, leading ACE Ltd. to nearly quadruple first quarter net income.
Net income for the first three months was $973 million, compared to $250 million a year ago during the same time.
Even G. Greenberg, chairman and chief executive officer, says the first quarter was “the strongest quarter yet for rate increases, which were more broad-based.”
Rates for business in the U.S. were up 3.6 percent, he adds. Pricing improved in many property and casualty lines and “modestly improved” in some casualty classes, Greenberg says in a statement.
Pre-tax catastrophe losses including reinsurance reinstatement premiums were $19 million compared to $489 million during 2011's first quarter.
An improving price environment and lower catastrophe losses led to a profitable combined ratio of 89.2, rather than the 105.2 the multiline property and casualty insurer posted in the first quarter last year.
P&C underwriting income returned to the black in the first quarter—$314 million compared to an underwriting loss of $149 million in the first quarter last year.
Total net premiums written were up 3.7 percent while net premiums earned were up 2.2 percent compared to the same period in 2011.
Greenberg says the company improved retention and increased new business while staying away from some lines, such as general workers' compensation in the U.S., which continues to be underpriced.
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