Q1 Earnings Increase at ACE, PXRE, Annuity Life

May 2, 2001

Three Bermuda-based insurance groups, including the island’s largest insurer, ACE Limited, all posted significant earnings increases for the year’s first quarter.

Despite adopting stricter accounting rules, ACE reported net operating income of $164 million, a 29 percent increase over Q1 2000 figures. Gross premium rose by 28 percent to $2.6 billion.

CEO Brian Duperreault indicated that the growth was especially positive in the sense that it “was organic as opposed to simply acquisition accretive.” He added that,” 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.”

Although gross premiums written declined 5 percent to $78.057 million, PXRE Group Ltd. posted a 41 percent increase in net operating income to $5.639 million.

“We are pleased to report strengthened profitability in the first quarter of 2001, despite the effects of the Petrobas oil rig loss,” stated PXRE CEO Gerald L. Radke. “Our Catastrophe and Risk Excess and Finite segments are growing in line with our expectations and carry higher margins than the business we have chosen not to renew in other segments.” PXRE ceased underwriting in the Lloyd’s market last year.

Annuity & Life Re also reported a 40 percent gain in net operating income to $11.690 million for the quarter, compared with $8.377 million last year. Total revenue was $79.762 million, a 24 percent gain.”The face amount of life insurance in force increased 58% to $83.2 billion, compared with $52.7 billion at March 31, 2000,” said the announcement

Annuity & Life Re CEO Lawrence S. Doyle noted that last quarter marked the company’s third anniversary, and, and stated, “We are now the eleventh largest writer of new life reinsurance business in the U.S. for the year 2000.”

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