ACE Q3 Earnings Hit by $90 Million in European Flood Losses

Bermuda’s ACE Limited announced today that an accumulation of losses resulting principally from the recent floods in Eastern Europe will impact operating income in the third quarter of 2002, by “approximately $90 million after tax, or $0.33 per share.”

The company’s statement said that “Recent increases in industry estimates of insured losses together with additional flood losses incurred in France are included in our estimates. ACE incurred losses both directly and as an excess of loss reinsurer where increases in forecasted insured losses led to penetration of several higher layers of coverage.”

The company is scheduled to formally publish its third quarter results on October 29.