(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 $1.66 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 $1.88
for the current quarter compared with earnings per share of $0.58 for the same quarter last year. Earnings per share calculations above are
based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis.
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.
Gross premiums written during the quarter increased by 25.1 percent to $2.5 billion, compared with $2 billion for the comparable
quarter last year.
Net premiums written during the quarter increased by 9.0 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 25.6 percent to $7.5 billion compared with the same
period last year and net premiums written increased by 16.6 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 period 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.
As previously announced, ACE has commenced a public offering of approximately $1 billion of its ordinary shares, plus up to an additional $150 million of ordinary shares to cover over-allotments. Subject to market and other conditions, ACE expects the transaction to
be completed in the near future. ACE intends to deploy the new capital by, among other things, expanding its net underwriting capacity,
either through internal growth and/or through acquisitions of lines of business or companies.
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.