ACE Limited (NYSE: ACE) today reported income excluding net realized gains (losses) of $216 million for the quarter ended March 31, 2002 compared with $164 million for the same quarter in 2001. Earnings per share excluding net realized gains (losses) after deducting preferred dividends, was $0.77 for the current quarter compared with $0.65 for the same quarter last year. Net income for the quarter ended March 31, 2002 was $198 million compared with $118 million for fiscal 2001 and earnings per share, after deducting preferred dividends, was $0.70 for the current quarter compared with $0.46 for the same quarter last year. The fully diluted book value per share of the company at March 31, 2002 was $23.78.
Brian Duperreault, Chairman and Chief Executive Officer of ACE Limited, commented: "This quarter was the most profitable period we have ever achieved from an operating point of view, even though we haven't fully deployed all of the capital we raised in the fourth quarter of last year. Gross premiums rose 22 percent and net operating income, exclusive of the elimination of goodwill, increased by 17 percent."
Mr. Duperreault continued: "This quarter we have changed our reporting segments to reflect the way we currently manage our business. I believe that it will provide greater transparency for investors for our individual lines of business."
During the quarter ended March 31, 2002, following recent changes in executive management responsibilities, the Company reassessed and changed its reporting segments from the individual operating units to lines of business: Insurance - North American Region, Insurance - Overseas General, Global Reinsurance and Financial Products.
Insurance - North American
This segment includes the operations of ACE USA and ACE Bermuda, excluding the Financial Solutions business in both the U.S. and Bermuda which is now included in the new financial products segment, and ACE Canada.
Insurance - Overseas General
This segment includes the operations of ACE International, including ACE Europe, ACE Japan, ACE Far East and ACE Latin America, and the insurance operations of ACE Global Markets. The reinsurance operations of ACE Global Markets is now included in the new global reinsurance segment.
Global Reinsurance
This segment comprises the operations of ACE Tempest Re in Bermuda, ACE Tempest US and ACE Tempest UK. Also included in this segment, but reported separately, is the life reinsurance operations.
Financial Products
This segment includes the financial guaranty business of ACE Guaranty Re and ACE Capital Re International and the Financial Solutions business in the U.S. and Bermuda.
Gross premiums written during the March 31, 2002 quarter increased by 22 percent to $3.1 billion, compared with $2.6 billion for the comparable quarter in 2001.
Net premiums written during the March 31, 2002 quarter were $2.0 billion compared with $1.7 billion for the same period in 2001. Net premiums earned during the first quarter of 2002 and 2001 were $1.4 billion.
Net investment income, excluding net realized gains (losses) on investments, was $204 million for both fiscal 2002 and 2001 first quarter. During the quarter, ACE had net realized losses on investments, net of income tax, of $18 million, compared with net realized losses on investments of $23 million for the same quarter in 2001.
During the quarter ended March 31, 2002, the Company adopted Financial Accounting Standard No. 142 "Goodwill and other Intangibles". As a result, the Company ceased amortizing goodwill from January 1, 2002.
The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at: www.acelimited.com.
ACE Limited (NYSE: ACE) will host a live webcast of its first quarter earnings conference call on Wednesday, May 1, 2002, beginning at 9:30 a.m. EDT. The public may access the webcast, which is available on a listen-only basis, at www.acelimited.com. Please refer to our website under Investor Info, Notices and Events, for further log-in details. Individuals who access the webcast will be asked to identify themselves and their affiliation. A replay of the webcast will be available following the live webcast on Wednesday, May 1, 2002 until Monday, June 3, 2002, 11:30 a.m. EDT.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. ACE's forward-looking statements could be affected by competition, the levels of new and renewal business achieved, market acceptance, the frequency of unpredictable catastrophic events, actual loss experience, the amount and timing of reinsurance recoverables and economic, market, political, legislative, regulatory, insurance and reinsurance business conditions, as well as management's response to these factors, and other factors identified in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
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ACE Corporate Announcements - First Quarter 2002
March 13, 2002 - ACE Limited and XL Capital Ltd Establish Joint Chair at the School of Risk Management, Insurance and Actuarial Science of St. John's University
ACE Limited and XL Capital Ltd announced that they have jointly pledged $3 million to establish the Robert Clements Chair in Risk Management and Insurance at the School of Risk Management, Insurance and Actuarial Science of St. John's University (formerly the College of Insurance). The Chair was established in honor of the founder of ACE and XL and to mark his retirement as Chairman of the Board of Overseers of the School of Risk Management.
March 12, 2002 - Moody's Confirms Syndicate 2488 Aa3 Financial Strength Rating
Syndicate 2488 at Lloyd's has had its Aa3 Insurance Financial Strength Rating confirmed by Moody's Investors Services Ltd. The outlook for the rating is stable. The syndicate is the only syndicate at Lloyd's to be awarded the Aa3 rating. Syndicate 2488 is managed by ACE Global Markets, the Lloyd's operation of ACE Limited.
March 6, 2002 - Susan Rivera Appointed President of ACE INA, Brian Dowd Promoted to President of ACE Westchester Specialty
ACE INA Holdings, Inc., a member of the ACE Group of Companies, announced the appointment of Susan Rivera to the position of President, ACE INA Holdings, Inc. Ms. Rivera was previously the president of American Home Assurance Company. ACE also announced the promotion of Brian Dowd to the position of President of ACE Westchester Specialty. Prior to this appointment, Mr. Dowd had served as head of ACE INA's Specialty P & C group.
February 19, 2002 - ACE appoints Randi Cigelnik to General Counsel, ACE Europe and ACE Global Markets
ACE Limited announced that Randi Cigelnik, General Counsel, ACE Bermuda, ACE Tempest Reinsurance Ltd. (ACE Tempest Re) and ACE Financial Solutions International (ACE FSI) has been appointed to the newly created position of General Counsel for ACE Europe and ACE Global Markets.
February 4, 2002 - New ACE European Headquarters
The UK-based subsidiaries of ACE Limited have contracted to lease 100 Leadenhall Street as their new European headquarters. The building, to be known as "The ACE Building", will see the group's ACE Europe and ACE Global Markets subsidiaries relocate to the new premises in July 2002. The other UK operations of ACE Limited will also relocate to the new location to consolidate the move. These include ACE European Markets, ACE Capital Re and ACE Europe Run-off Services.
January 25, 2002 - ACE USA Professional Risk to Form Strategic Alliance with E-Risk Services, LLC
ACE USA Professional Risk announced it has formed a strategic alliance with E-Risk Services, LLC, a Managing General Agent. Under the terms of the agreement, ACE USA Professional Risk will utilize E-Risk Services to market, underwrite and service its private company directors' and officers' liability coverage and related products. The strategic alliance will serve to complement and enhance ACE USA's current capabilities in the management and professional liability coverage areas.
January 3, 2002 - ACE USA Business Aviation to Join with United States Aircraft Insurance Group
ACE USA announced that it has become a member company of the USAIG aviation pool effective January 1st, 2002. Under the agreement, future ACE USA business Aviation accounts for corporate aviation, non-critical products, pleasure and business aircraft and aviation-associated workers' compensation would be underwritten through USAIG.
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