ACE Limited reported net income for the quarter ended December 31, 2010, of $2.92 per share, compared with $2.81 per share for the same quarter last year, totaling over $1 billion. Income excluding net realized gains (losses) was $2.05 per share, compared with $2.01 per share for the same quarter of 2009.
ACE’s bulletin also noted that “book value increased $129 million during the quarter. Book value per share was up 2 percent from September 30, 2010, and tangible book value per share decreased 2 percent in the quarter due to the Rain and Hail transaction. Book value and tangible book value per share now stand at $68.59 and $54.63, respectively. Annualized operating return on average equity for the quarter was 13.2 percent. The property and casualty (P&C) combined ratio for the quarter was 90.3 percent.”
Net income for the year ended December 31, 2010, was $9.11 per share, compared with $7.55 per share for 2009, a total of $3.108 billion For the year ended December 31, 2010, income excluding net realized gains (losses) was $7.79 per share, compared with $8.17 per share for 2009. Book value increased $3.3 billion, up 17 percent during the year ended December 31, 2010, while tangible book value increased $2.6 billion, up 16 percent. Annualized operating return on equity for the year was 13.1 percent. The P&C combined ratio for the year ended December 31, 2010, was 90.2 percent.
Chairman and CEO Evan G. Greenberg commented: “ACE had a very good fourth quarter and a strong finish to an excellent year, both financially and operationally. During the year, we made important strides to better position our company for the future.
“Our after-tax operating income for the year was nearly $2.7 billion, with strong contributions from both underwriting and investment income, and our book value continued its track record of growth, closing up 17 percent for the year.
“Over the last five years, we have grown our per-share book and tangible book value at a compound annual rate of 14.5 percent and 15.8 percent, respectively. Our P&C combined ratio for 2010 was 90.2 percent, which speaks to our strong underwriting culture and cycle management. I believe these standout financial results, which produced an operating return on equity of 13.1 percent, demonstrate the power of our well-diversified global balance of businesses.
“During the year we added to our executive management ranks, increased the rigor of our underwriting discipline and completed a number of acquisitions that will pay us dividends immediately and, more importantly, over the longer-term. During the quarter, S&P upgraded the financial strength rating of our core operating insurance companies to AA-, acknowledging the strength of our balance sheet and our distinct global franchise. Without a doubt, we ended the year stronger and better positioned to capitalize upon opportunity in 2011 and beyond.
“While the operating environment remains challenging, both economically and competitively, we are optimistic and confident in our ability to continue delivering superior results.”
Source: ACE Limited
Topics Profit Loss Property Casualty
Was this article valuable?
Here are more articles you may enjoy.
Progressive Gains as Drivers Shop Around for Auto Insurance—Again 
Survey Shows Majority of Florida, California Homeowners Seeing Higher Insurance Costs 
Marsh McLennan Agency to Buy Fisher Brown Bottrell for About $316M 
Dubai Floods Expose Weaknesses to a Rapidly Changing Climate 
