ACE Limited announced that it estimates total net catastrophe-related charges during the third quarter across the entire ACE Group of Companies will be approximately $480 million pre-tax. This total includes the previously announced loss estimate of approximately $100 million from Hurricane Charley, as well as loss estimates from Hurricanes Frances, Ivan and Jeanne, which struck the Caribbean and the United States in the months of August and September, and typhoons Songda, Chaba and Meari, which impacted Asia during the quarter.
The Company estimates that it will record an after-tax charge of approximately $400 million in the third quarter. In previous guidance, the Company expected the annual P&C combined ratio to be between 88 percent and 90 percent, and the consolidated effective tax rate to be between 21 percent and 23 percent. The Company now believes the combined ratio will be between 93 percent and 94 percent, and the consolidated effective tax rate will be between 24 percent and 26 percent.
ACE will report third quarter financial results on the evening of Oct. 26, 2004 and will provide additional details about the CAT losses during our earnings conference call on Oct. 27, 2004.
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