ACE Limited reported net income for the quarter ended December 31, 2009, of $953 million, or $2.81 per share, compared with $0.06 per share for the same quarter last year.
For the full year ACE reported net income of $2.549 billion. Operating income, which excludes net realized capital gains/losses, was a record breaking $2.759 billion, a 6 percent increase over 2008.
Net income for the year ended December 31, 2009, was $7.55 per share, compared with $3.50 per share for 2008. Income excluding net realized gains (losses) was $8.17 per share, compared with $7.67 per share for 2008. Full year return on average equity was 16.2 percent. Book value increased $5.2 billion, up 36 percent for the year. The P/C combined ratio was 88.3 percent for the year.
Chairman and CEO Evan G. Greenberg commented: “ACE had very strong fourth quarter income. Operating income was up 9 percent over prior year, contributing to record income for the year, and net income exceeded $900 million for the quarter. Our book value grew 36 percent in the year while tangible book grew 47 percent; both are now at all-time highs. In fact, over the last five years, we have grown our book and tangible book value at a compound annual rate of 15 percent and 17 percent, respectively.
“Our P&C combined ratio for 2009 was 88.3 percent – a world-class result – and in terms of capital efficiency, we achieved an operating return on equity for the year of more than 16 percent. We are confident we can continue to produce superior ROEs barring unforeseen events.
“P&C net written premiums were up about 9 percent in the quarter – a very solid performance that reflects the benefit of foreign exchange. While premium revenue growth will continue to be impacted by recessionary and competitive insurance market conditions, we are seeing more opportunities for profitable growth as a result of our increased geographic and product presence.
“In spite of the year’s challenging economic, financial and insurance market conditions, we continued to invest in our company and benefit from our local presence in over 50 countries, from customer and producer flight to quality and capability, and from our diversified mix of P&C, A&H and Life businesses. We fully expect to continue delivering superior results.”
The complete report and additional information may be obtained on the Company’s web site at: www.acelimited.com .
ACE will host its fourth quarter earnings conference call and webcast today, February 3, 2010, beginning at 8:30 a.m. ET. The earnings conference call will be available via live and archived webcast on the web site, or by dialing 888-389-5997 (within the United States) or 719-457-1529 (international); pass code 4701116. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available for approximately one month. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); pass code 4701116.
Source: ACE Llimited
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