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Daily Insurance Industry News
Wednesday 23rd of May 2018
February 7, 2008

Ace reports record year

by David Masters

Story link: Ace reports record year

2007 was a record year for Ace Limited, with net income for the fourth quarter of $572 million, equating to $1.69 per common share after payment of preferred dividends. This is compared to $1.99 per share for the same quarter in 2006.

Operating income increased 8%, up to a record $693 million. The income excluding net realized gains (losses) for the fourth quarter was $2.05 per share, $0.13 higher than the same quarter of the previous year.

Book value for the quarter was up 4%, whilst annualised return on average equity was 17.2%. Net realised and unrealised loss after tax for the quarter totalled $15 million. Overall, their investment portfolio saw a pre-tax gain of $106 million.

Net income for the whole of 2007 was up 12% to a record $2,578 million; equivalent to $7.66 per share. Operating income was also up by 15%, reaching a record $2,712 million, or $8.07 per share.

The company’s combined ratio for 2007 was 87.9%, compared to 88.1% for 2006. 2007 also saw a return on equity of 17.9%, and the book value increase by 17%.

Chairman and CEO of Ace, Evan Greenberg, said of the results: “Ace had a strong fourth quarter that capped an excellent year for the company. All areas of the company performed well, and the financial markets crisis had a relatively modest impact on our results.

“For the year, we achieved record net income and net operating income, which increased 12% and 15%, respectively, while book value per share increased 16%. In December we announced two acquisitions that will further diversify and contribute to Ace’s future earnings.

“Looking ahead, we are well positioned to manage through an increasingly difficult environment marked by continuing volatility in the financial markets, deteriorating economic fundamentals and a softening property and casualty market.”

 

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