(NYSE:ACE BSX:ACL.BH) today reported income excluding net realized gains (losses) of $216 million for the quarter ended March 31, 2002 compared with $164 million for the same quarter in 2001. Earnings per share excluding net realized gains (losses) after deducting preferred
dividends, was $0.77 for the current quarter compared with $0.65 for the same quarter last year. Net income for the quarter ended March 31,
2002 was $198 million compared with $118 million for fiscal 2001 and earnings per share, after deducting preferred dividends, was $0.70 for
the current quarter compared with $0.46 for the same quarter last year. The fully diluted book value per share of the company at March 31, 2002 was $23.78.
Brian Duperreault, Chairman and Chief Executive Officer of ACE Limited,commented: "This quarter was the most profitable period we
have ever achieved from an operating point of view, even though we haven't fully deployed all of the capital we raised in the fourth
quarter of last year. Gross premiums rose 22 percent and net operating income, exclusive of the elimination of goodwill, increased by 17
percent."
Mr. Duperreault continued: "This quarter we have changed our reporting segments to reflect the way we currently manage our business.
I believe that it will provide greater transparency for investors for our individual lines of business."
Following recent changes in executive management responsibilities, the Company reassessed and changed its reporting segments from the individual operating units to lines of business: Insurance - North American, Insurance - Overseas General, Global Reinsurance and
Financial Products.
Insurance - North American
This segment includes the operations of ACE USA and ACE Bermuda, excluding the Financial Solutions business in both the U.S. and
Bermuda which is now included in the new financial products segment, and ACE Canada.
Insurance - Overseas General
This segment includes the operations of ACE International, including ACE Europe, ACE Japan, ACE Far East and ACE Latin America, and the insurance operations of ACE Global Markets. The reinsurance operations of ACE Global Markets is now included in the new global reinsurance segment.
Global Reinsurance
This segment comprises the operations of ACE Tempest Re in Bermuda, ACE Tempest US and ACE Tempest UK. Also included in this segment, but reported separately, is the life reinsurance operations.
Financial Products
This segment includes the financial guaranty business of ACE Guaranty Re and ACE Capital Re International and the Financial Solutions business in the U.S. and Bermuda.
Gross premiums written during the March 31, 2002 quarter increased by 22 percent to $3.1 billion, compared with $2.6 billion for the
comparable quarter in 2001.
Net premiums written during the March 31, 2002 quarter were $2.0 billion compared with $1.7 billion for the same period in 2001. Net
premiums earned during the first quarter of 2002 and 2001 were $1.4 billion.
Net investment income, excluding net realized gains (losses) on investments, was $204 million for both fiscal 2002 and 2001 first
quarter. During the quarter, ACE had net realized losses on investments, net of income tax, of $18 million, compared with net realized losses on investments of $23 million for the same quarter in
2001.
During the quarter ended March 31, 2002, the Company adopted Financial Accounting Standard No. 142 "Goodwill and other Intangibles". As a result, the Company ceased amortizing goodwill from January 1, 2002.
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.