(NYSE:ACE, BSX: ACL.BH) today reported a net loss excluding net realized gains (losses) of $390.1 million for the quarter ended September 30, 2001, or a loss, after deducting preferred dividends, of $1.72 per share, compared with income excluding net realized gains (losses) of $150.6 million for the quarter ended September 30, 2000, or earnings per share of $0.62. The net loss for the quarter ended September 30, 2001 was $442.6 million compared with net income of $140.8 million in 2000 and the loss per share, after deducting preferred dividends, was $1.95 for the current quarter compared with earnings per share of $0.58 for the same quarter last year. Earnings (loss) per share calculations above are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis. Under FAS 128, the incremental shares from assumed conversions are not included in computing diluted loss per share amounts. The fully diluted book value per share of the Company at September 30, 2001 was $22.10. Certain amounts noted above have been restated from the third quarter earnings
highlights issued on October 25, 2001.
The Company's third quarter results were reduced by $558.8 million after tax ($636.9 million on a pre-tax basis) as a result of the
September 11, 2001 tragedy. Excluding the impact of this event, the Company's income excluding net realized gains (losses) for the quarter
ended September 30, 2001 would have been $168.7 million and earnings per share excluding net realized gains (losses), after deducting
preferred dividends, would have been $0.68 per share on a diluted basis.
Brian Duperreault, chairman and chief executive officer of ACE Limited, commented: "The tragedy of September 11 has materially altered the business of insurance. It has created uncertainty and significantly increased insurance demand. With our global platform and increased capital, ACE is well positioned to meet this demand."
Gross premiums written during the quarter increased by 25 percent to $2.5 billion, compared with $2 billion for the comparable quarter
last year.
Net premiums written during the quarter increased by 9 percent to $1.3 billion compared with $1.2 billion for the same quarter last
year. Net premiums earned during the quarter increased to $1.4 billion from $1.2 billion for the same quarter last year.
For the first nine months of fiscal 2001, gross premiums written increased by 26 percent to $7.5 billion compared with the same period
last year and net premiums written increased by 17 percent to $4.5 billion compared with the first nine months of fiscal 2000. Net premiums earned for the nine months ended September 30, 2001 were $4.2 billion compared with $3.4 billion for the same period last year.
Net investment income, which excludes net realized gains (losses)on investments, was $192.9 million for the fiscal 2001 third quarter,
compared with $197.6 million for the same quarter last year. For the first nine months of fiscal 2001, net investment income, was $593.6
million compared with $561.5 million for the same period last year. During the 2001 third quarter, ACE had net realized losses, net of tax, of $52.5 million, compared with net realized losses of $9.8
million for the same quarter last year. For the nine months ended September 30, 2001, net realized losses, net of tax, were $54.7 million, compared with net realized gains of $11.5 million for the nine months ended September 30, 2000.
On October 25, 2001, ACE announced that it agreed to sell in a public offering 28.6 million ordinary shares at a price per share of
$35.00, resulting in net proceeds of $980 million. ACE also granted the underwriters of the offering an option to purchase an additional
4.29 million ordinary shares at the same price to cover over-allotments. This option was exercised on Monday, October 29, 2001 and will result in additional proceeds of $147 million.
The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a
global basis with operating subsidiaries in nearly 50 countries.
Additional information can be found at: http://www.acelimited.com.
Application of the Safe Harbor of the Private Securities
Litigation Reform Act of 1995:
Any forward-looking statements made in this press release reflect
the Company's current views with respect to future events and
financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements involve risks and uncertainties which may cause actual
results to differ materially from those set forth in these statements.
Among other things, the impact of the recent tragedy on the Company's
financial results will depend on the number of insureds and reinsureds
affected by the disaster, the amount and timing of losses actually
incurred and reported by insureds and reinsureds and governmental
responses to the tragedy. Availability of capacity to clients will
depend on opportunities presented and the application of underwriting
guidelines. Also, competition in the industry, levels of new and
renewal business achieved, market acceptance, the frequency of
unpredictable catastrophic events, actual loss experience and
economic, market, regulatory, insurance and reinsurance business
conditions and other factors identified in the Company's filings with
the Securities and Exchange Commission could affect the
forward-looking statements contained in this press release. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the dates on which they are made.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.