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ACE Reports Record Quarterly Operating Income Of $857 Million; Global P&C Net Premiums Up Over 10.5% In Constant Dollars; P&C Underwriting Income Up 67% With P&C Combined Ratio Of 86.5%; Operating Return On Equity Is 13%

Stocks in this article: ACE

ACE Limited (NYSE: ACE) today reported net income for the quarter ended September 30, 2013, of $2.66 per share, compared with $1.86 per share for the same quarter last year. (1) Operating income was $2.49 per share, compared with $2.01 per share for the same quarter last year. Book value and tangible book value per share increased 3.4% and 3.9%, respectively, from June 30, 2013. Book value and tangible book value per share now stand at $82.98 and $66.91, respectively. Operating return on equity for the quarter was 13.0%. The property and casualty (P&C) combined ratio for the quarter was 86.5%.

Third Quarter Summary
(in millions, except per share amounts)
(Unaudited)
               
(Per Share - Diluted)
2013   2012   Change 2013   2012   Change
 
Operating income, net of tax $ 857 $ 688 24.6 % $ 2.49 $ 2.01 23.9 %
Net realized gains (losses), net of tax 59     (48 )   NM 0.17     (0.15 )   NM
Net income $ 916     $ 640     43.1 % $ 2.66     $ 1.86     43.0 %
 

For the nine months ended September 30, 2013, net income was $8.02 per share, compared with $5.67 per share for 2012. Operating income was $6.95 per share, compared with $6.23 per share for 2012. Book value increased $687 million, up 2.5% from December 31, 2012, and tangible book value increased $197 million, up 0.9%. Operating return on equity was 12.3% year to date. The P&C combined ratio for the nine months ended September 30, 2013, was 87.5%.

Nine Months Ended Summary
(in millions, except per share amounts)
(Unaudited)
             

(Per Share – Diluted)

2013   2012   Change 2013 2012   Change
 
Operating income, net of tax $ 2,393   $ 2,132 12.2 %   $ 6.95 $ 6.23 11.6 %
Net realized gains (losses), net of tax 367     (191 )   NM 1.07   (0.56 ) NM
Net income $ 2,760       $ 1,941     42.2 %   $ 8.02   $ 5.67     41.4 %
 

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had another record quarter driven by exceptionally strong underwriting results and double-digit constant-dollar global P&C premium revenue growth. We produced $857 million in after-tax operating income and our operating ROE was 13%. Per share book value increased 3.4% and is now up 2.6% for the year.

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