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ACE Profit Jumps 50 Pct, 'firming Market' Helps

The Associated Press

ZURICH (AP) — Insurance provider ACE Ltd.'s profit jumped 50 percent in the latest quarter, more than Wall Street expected, as the company benefited from a "generally firming market" that helped spur new polices and higher revenue from premiums.

ACE said Tuesday that its net income was $567 million, or $1.69 per share, versus $377 million, or $1.10 per share, in the year-ago period.

Excluding net realized gains and losses, the profit was $1.99 per share. On that same basis, analysts polled by Thomson Reuters had projected $1.96.

The company's net premiums written — $3.42 billion — and earned — $3.19 billion — rose a combined 9 percent over last year. Excluding currency fluctuations, net premiums written jumped 15 percent, and net premiums earned jumped 16 percent.

The company's chief executive, Evan Greenberg, said strength in the U.S. dollar hurt the property and casualty division, whose premium revenue grew 7 percent in the quarter after being adjusted for currency fluctuations. Greenberg said the company benefited from a "generally firming market."

The stock was unchanged in after-hours trading.