Bermuda’s ACE Limited became the latest insurer to report a third quarter loss due to the impact of the Sept. 11 attacks. ACE said that its net loss during the period, excluding net realized gains (losses), non-recurring expenses and charges for adopting a new accounting system, was $390.1 million.
Overall net losses were $442.59 million for the quarter, as compared to an overall profit during the same period last year of $140.75 million. The results caused an overall loss for the first nine months of $170 million, compared with a $429 million profit in 2000’s first nine months, despite an increase in gross premiums written during the quarter from $2 to $2.5 billion.
“The company’s third quarter results were reduced by $558.8 million after tax ($636.9 million on a pre-tax basis) as a result of the September 11 tragedy,” said the earnings announcement. “Excluding the impact of this event, the Company’s net income excluding net realized gains (losses) for the quarter ended September 30, 2001 would have been $168.7 million and earnings per share excluding net realized gains (losses), after deducting preferred dividends, would have been $0.68 per share on a diluted basis.”
Chairman and CEO Brian Duperreault commented that, “The tragedy of September 11 has materially altered the business of insurance. It has created uncertainty and significantly increased insurance demand. With our global platform and increased capital [It plans to raise $1 billion – See IJ Website Oct.25] ACE is well positioned to meet this demand.”|”ace, posts, 3q, net, loss, of, $390.1, million
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