This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
ACE Reports Fourth Quarter 2010 Net Income of $1 Billion (Excerpt)
ZURICH, Switzerland – 03 February, 2011 – ACE Limited (NYSE: ACE) reported net income for the quarter ended 31 December, 2010, of $2.92 per share, compared with $2.81 per share for the same quarter last year. Income excluding net realized gains (losses) was $2.05 per share, compared with $2.01 per share for the same quarter last year. Book value increased $129 million during the quarter. Book value per share was up 2% from September 30, 2010, and tangible book value per share decreased 2% in the quarter due to the Rain and Hail transaction. Book value and tangible book value per share now stand at $68.59 and $54.63, respectively. Annualized operating return on average equity for the quarter was 13.2%. The property and casualty (P&C) combined ratio for the quarter was 90.3%.
Full Year Summary
(in millions, except per share amounts)
(Unaudited)
(Per Share - Diluted)
2010 2009 Change 2010 2009 Change
Net income $ 3,108 $ 2,549 22 % $ 9.11 $ 7.55 21 %
Net realized gains (losses), net of tax 451 (210 ) NM 1.32 (0.62 ) NM
Income excluding net realized gains
(losses), net of tax $ 2,657 $ 2,759 (4 )% $ 7.79 $ 8.17 (5 )%
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had a very good fourth quarter and a strong finish to an excellent year, both financially and operationally. During the year, we made important strides to better position our company for the future.
“Our after-tax operating income for the year was nearly $2.7 billion, with strong contributions from both underwriting and investment income, and our book value continued its track record of growth, closing up 17% for the year. Over the last five years, we have grown our per-share book and tangible book value at a compound annual rate of 14.5% and 15.8%, respectively. Our P&C combined ratio for 2010 was 90.2%, which speaks to our strong underwriting culture and cycle management. I believe these standout financial results, which produced an operating return on equity of 13.1%, demonstrate the power of our well-diversified global balance of businesses.
"During the year we added to our executive management ranks, increased the rigor of our underwriting discipline and completed a number of acquisitions that will pay us dividends immediately and, more importantly, over the longer-term. During the quarter, S&P upgraded the financial strength rating of our core operating insurance companies to AA-, acknowledging the strength of our balance sheet and our distinct global franchise. Without a doubt, we ended the year stronger and better positioned to capitalize upon opportunity in 2011 and beyond.
“While the operating environment remains challenging, both economically and competitively, we are optimistic and confident in our ability to continue delivering superior results."
Please refer to the ACE Limited Financial Supplement dated 31 December, 2010, and the full transcript of this press release which is posted on the company's website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio, and capital structure.
Celebrating 25 years of insuring progress, the ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at www.acegroup.com.
ACE Limited
Investor Contact:
Helen M. Wilson, 441-299-9283
helen.wilson@acegroup.com
or
Media Contact:
Stephen M. Wasdick, 212-827-4444
stephen.wasdick@acegroup.com