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ACE Reports Fourth Quarter Operating Income Of $824 Million Or $2.39 Per Share, Up 67%, P&C Net Premiums Written Up 20% In Constant Dollars, And Operating Return On Equity Of 12.1%

ACE Limited (NYSE: ACE) today reported net income for the quarter ended December 31, 2013, of $2.90 per share, compared with $2.22 per share for the same quarter last year. (1) Operating income was $2.39 per share, compared with $1.43 per share for the same quarter last year. Book value and tangible book value per share increased 2.2% and 3.0%, respectively, from September 30, 2013. Book value and tangible book value per share now stand at $84.83 and $68.93, respectively. Operating return on equity for the quarter was 12.1%. The property and casualty (P&C) combined ratio for the quarter was 89.3%.

 
Fourth Quarter Summary
(in millions, except per share amounts)
(Unaudited)
           
(Per Share - Diluted)
2013   2012   Change 2013   2012   Change
 
Operating income, net of tax $ 824 $ 492 67.5 % $ 2.39 $ 1.43 67.1 %
Net realized gains (losses), net of tax 174     273     (36.3)% 0.51     0.79     (35.4)%
Net income $ 998     $ 765     30.5 % $ 2.90     $ 2.22     30.6 %
 

For the year ended December 31, 2013, net income was $10.92 per share, compared with $7.89 per share for 2012. Operating income was $9.35 per share, compared with $7.65 per share for 2012. Book value increased $1.3 billion, up 4.7% from December 31, 2012, and tangible book value increased $865 million, up 3.8%, and up 6.5% excluding acquisitions. The P&C combined ratio for the year ended December 31, 2013, was 88.0%.

   
Full Year Summary
(in millions, except per share amounts)
(Unaudited)
         

(Per Share – Diluted)

2013   2012   Change 2013   2012   Change
 
Operating income, net of tax $ 3,217   $ 2,624 22.6%   $ 9.35 $ 7.65 22.2%
Net realized gains (losses), net of tax 541     82   NM 1.57     0.24   NM
Net income $ 3,758       $ 2,706   38.9% $ 10.92     $ 7.89   38.4%
 

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent fourth quarter and a record year. Both our quarterly and annual results were driven by very strong premium revenue growth globally and an exceptional underwriting performance. Put simply, we are growing while achieving good margins – it’s about growth in areas where prices are attractive and securing improved terms including rate in areas where they’re not.

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