We made a small acquisition at the end of December, Rio Guayas, the fourth largest non-life insurer in Ecuador. The addition will complement our existing business in that country in terms of geographic presence, product and distribution. By the way, we also closed on Penn Millers in the fourth quarter, a quarter earlier than we had estimated.Let me talk about the full year and put ACE’s performance for the year in perspective. Full-year net operating income was nearly 2.4 billion, down 11% from 2010. The composition of our operating income was quite good with about one-third coming from underwriting income and two-thirds from investment income. Our results included almost 500 million more in pre-tax catastrophe losses, or twice as much as we experienced in 2010. Excluding the impact of cats from both years, operating income was actually up 5% over prior year. Both years included roughly the same amount of prior period reserve development, so that underlying growth in income came from current accident year results, predominantly from the acquisitions we made as well as our A&H business and improved P&C portfolio management in the U.S.
ACE's CEO Discusses Q4 2011 Results - Earnings Call Transcript
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