(NYSE:ACE) today reported income excluding net realized gains (losses)and the cumulative effect of adopting a new accounting standard (net of income tax) of $164 million for the quarter ended March 31, 2001 compared with $127 million for the same quarter in 2000. Earnings per share excluding net realized gains (losses) and the cumulative effect of adopting a new accounting standard (net of income tax), after deducting preferred dividends, was $0.65 for the current quarter compared with $0.58 for the same quarter last year. The fully diluted book value per share of the company at March 31, 2001 was $23.82.
Brian Duperreault, chairman and chief executive officer of ACE Limited, commented: "This was an excellent quarter for ACE with gross premiums up 28 percent and net operating income up 29 percent. In addition it was the first time in quite a while that our results reflected the financial performance of the same business units in both periods. This highlights that the growth we achieved was organic as opposed to simply acquisition accretive."
Mr. Duperreault added, "We continue to see the markets improve in nearly all geographic areas and across most product lines and, as a global entity, ACE is benefiting from the hardening market in each of our reporting segments."
Gross premiums written during the March 31, 2001 quarter increased by 28 percent to $2.6 billion, compared with $2.0 billion for the comparable quarter in 2000.
Net premiums written during the March 31, 2001 quarter were $1.7 billion compared with $1.5 billion for the same period in 2000. Net premiums earned during the quarter were up 24 percent to
$1.4 billion from $1.1 billion for the same quarter in 2000.
Net investment income, excluding net realized gains (losses) on investments, was $204 million for the fiscal 2001 first quarter, compared with $183 million for the same period last year. During the quarter, ACE had net realized losses on investments, net of income tax, of $23 million, compared with net realized gains on investments of $47 million for the same quarter in 2000.
During the quarter ended March 31, 2001, the Company adopted Financial Accounting Standard No. 133 "Accounting for Derivative Instruments and Hedging Activities." This adoption resulted in a
one-time expense of $23 million (net of income tax) on January 1, 2001, which has been recorded in the statement of operations.
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 (NYSE:ACE) will host a live webcast of its first quarter earnings conference call on Tuesday, May 1, 2001, beginning at
9:30 a.m. EDT. The public may access the webcast, which is available on a listen-only basis, at www.acelimited.com. Please refer to our website under investor info, notices and events, for further log-in details. Individuals who access the webcast will be asked to identify themselves and their affiliation. A replay of the webcast will be available following the live webcast on Tuesday, May 1, 2001 until Friday, June 1, 2001, 11:30 a.m. EDT.
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, competition in the industry may impact rates, policy conditions and growth. ACE's forward-looking statements could be affected by the levels of new and renewal business achieved, market acceptance, market conditions affecting ACE's investments and financing plans and interest rates generally. Also, the frequency of
unpredictable catastrophic events, actual loss experience, and economic, regulatory, insurance and reinsurance business conditions, as well as management's response to these factors, 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.
ACE Corporate Announcements - First Quarter, 2001
March 19, 2001 - ACE USA Names Taylor Atkins as Senior Vice President, Operations
ACE USA announced the appointment of Taylor Atkins as Senior Vice President, Operations. Based in Philadelphia, Atkins will focus on
several key areas, including working with our business units in spearheading process and workflow reengineering; implementing new workflows and changes as we implement our IT replacement strategy; developing plans to improve efficiencies in all units; identifying areas to reduce costs; and completing the processing and servicing initiatives now underway.
March 16, 2001 - Sovereign Risk Announces Signing of Reinsurance Contract with the Inter-American Development Bank
Sovereign Risk announced the signing by Sovereign and the Inter-American Development bank (IDB) of the first contract providing reinsurance for a private sector guarantee issued by IDB. Sovereign's US$50 million reinsurance policy supports the IDB's first private sector convertibility/transferability guarantee for Brazil, issued for a US$100 million loan to VBC Energia S.A. (VBC).
March 5, 2001 - ACE USA's INAMAR Marine Facilities Group Expands Nationwide Package Coverages for Yacht Clubs, Marinas, Boat Dealers
and Builders
INAMAR Marine Facilities Group (MFG)announced an expansion of its marine specialty policies to include a wide array of combined marine and non-marine coverages. The INAMAR MFG package is offered for a variety of marine-related businesses, events and facilities including
yacht clubs, marinas, boat dealers, boat builders and more. INAMAR is the marine insurance products and services arm of ACE USA.
February 9, 2001 - Lawrence Owen, U.S. Consul General to Bermuda, Will Join ACE INA in Key External Affairs Post
ACE INA Holdings, Inc. announced the appointment of Lawrence Owen, U.S. Consul General to Bermuda, to a new post as Senior Vice President
for External Affairs. Mr. Owen served as U.S. Consul General to Bermuda since his appointment by President Bill Clinton in 1999.
January 12, 2001 - ACE USA Names David Lupica to Managing Director for ACE USA Professional Risk
ACE USA announced the appointment of David Lupica to Managing Director. Based in New York City, he will have responsibility for underwriting and production for the Errors & Omissions and Directors & Officers product lines.
January 5, 2001 - ACE USA Names John Lupica to Executive Vice President for ACE USA Professional Risk
ACE USA announced the appointment of John Lupica to Executive Vice President of Professional Risk Division. Based in New York City, he will have responsibility for the overall operational aspects of the division, specializing in Professional, Management Liability, Surety
and related products.
January 4, 2001- ACE USA's INAMAR Marine Launches Interactive Website
INAMAR announced the launch of www.INAMARmarine.com, its interactive web site for customers, agents and brokers. The new site
showcases the products and services of the five INAMAR units: Recreational Marine, Ocean Marine, Marine Claims & Recovery Services, Marine Advisory Services and Marine Marketing Specialists.
CONTACT: ACE Limited, Hamilton
Investor Contact: Helen M. Wilson, 441/299-9283
or
Media Contact: Wendy Davis Johnson, 441/299-9347