Brian Duperreault, chairman and chief executive officer of ACE Limited, commented: "I am pleased that ACE had yet another excellent quarter with record operating earnings per share and that for the first time, shareholders' equity has surpassed the $5 billion mark. The platform we have built positions us to capitalize on the opportunities present in today's market."
Mr. Duperreault continued, "The tremendous market acceptance of the ACE brand, coupled with improving market conditions, helped us to again show significant growth in production, while our commitment to maintaining our underwriting standards continues to serve us well with all of our operating units once again reporting combined ratios under 100 percent."
Gross premiums written during the quarter increased by 29 percent to $2.0 billion, compared with $1.5 billion for the comparable quarter last year.
Net premiums written during the quarter increased by 31 percent to $1.2 billion compared with $911 million for the same quarter last year. Net premiums earned during the quarter increased 23 percent to $1.2 billion from $953 million in the same quarter last year.
Gross premiums written for the first nine months of fiscal 2000 were $5.9 billion compared with $2.5 billion for the same period last year.
For the first nine months of fiscal 2000, net premiums written increased to $3.9 billion compared with $1.6 billion for the first nine months of fiscal 1999. Net premiums earned for the nine months ended September 30, 2000 were $3.4 billion compared with $1.5 billion for the same period last year.
Net investment income, excluding net realized gains (losses), was $198 million for the fiscal 2000 third quarter, compared with $163 million for the same period last year, an increase of 21 percent. For the first nine months of fiscal 2000, net investment income, excluding net realized gains (losses), was $562 million compared with $334 million for the same quarter last year, a 68 percent increase. During the 2000 third quarter, ACE had net realized losses, net of tax, of $10 million, compared with net realized losses of $54 million for the same quarter last year. For the nine months ended September 30, 2000, net realized gains, net of tax, were $12 million, compared with net realized losses of $11 million for the nine months ended September 30, 1999.
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: www.acelimited.com.
ACE Limited plans to host a live webcast of their third quarter earnings conference call on Wednesday, November 1, 2000, beginning at 9:30 a.m. EST. The public may access the webcast, which is available on a listen-only basis, through the Internet at www.acelimited.com. Individuals who access the webcast will be asked to identify themselves and their affiliation. A replay of the webcast will be available starting on Wednesday, November 1, 2000 approximately 2 hours following the webcast until November 8, 2000 at 11:30 p.m. EST.
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. For example, market acceptance of ACE could change as a result of competition in the industry or as a result of perceptions, which ACE may not be able to predict or control. Pricing, demand and competition in the industry may also affect market conditions as well as ACE's business opportunities. ACE's forward-looking statements could be affected by the levels of new and renewal business achieved; market conditions affecting ACE's investments; the frequency of unpredictable catastrophic events; differences between estimates and actual reported losses; economic, regulatory, insurance and reinsurance business conditions; and other factors identified in the Company's filings with the Securities and Exchange Commission. 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.