ACE estimates $1.5bn Q3 losses

by David Masters

Story link: ACE estimates $1.5bn Q3 losses

ACE expects to post third quarter net realised and unrealised losses of $1.5 billion, or $1.45 per common share.

Around $1.3 billion of the losses are related to the company’s fixed income and equity portfolios.

The remaining $220 million is related to guaranteed minimum income benefit liabilities.

Book value per share will decline 7.5% on year as a consequence of the results.

ACE has assured investors that its capital position remains strong enough to keep its ratings up.

Evan Greenberg, ACE chairman and CEO, said the early estimate of results was released to provide clarity and reassurance to investors amidst ‘extraordinary market conditions’.

He added that the company’s capital position is ’strong’ and that given the economic climate, third quarter results were ‘quite good’.

ACE’s official third quarter results will be released on 28th October after the market closes.