Swiss-based insurer ACE posted a solid set of results for the second quarter of 2015, despite the reinsurance part of its business shrinking slightly.
Overall, gross written premiums hiked to $6.5 billion in the second quarter of 2015, compared with $6 billion in the second quarter of 2014, an 8.3 percent increase.
Profits also rose by 21 percent to $942 million in the second quarter of 2015, compared with $779 million in the same period of the prior year.
ACE’s P&C combined ratio deteriorated minimally to 87.7 percent in the quarter, compared with 87.5 percent in the second quarter of 2014.
Its global reinsurance segment posted a 5.9 percent decrease to $261 million in the second quarter of 2015 compared with $278 million in the second quarter of 2014. Its GWP also fell to $292 million in the quarter, compared with $308 million in the prior year quarter.
The segments combined ratio improved to 65.7 percent in the quarter, compared with 69.9 percent in the second quarter of 2014.
The North American P&C insurance segment posted a 20.8 percent increase in net premiums written to $1.9 billion in the second quarter of 2015, compared with $1.4 billion in the second quarter of 2014, while its gross written premiums (GWP) jumped to $2.9 billion in the second quarter, compared with $2.3 billion in the prior year quarter.
GWP and net premiums written included $428 million and $252 million, respectively, from the transfer of the Fireman's Fund in-force business at the time of the transaction.
Evan Greenberg, chairman and chief executive officer of ACE, said: “ACE had an excellent second quarter with earnings per share essentially flat with prior year as a strong dollar impacted both revenue and earnings.
“The highlight of the quarter was our announced agreement to acquire Chubb. We are moving quickly and the senior leadership of both companies has formed teams that are already engaged in integration planning.
“The sense of excitement and energy from the leadership of both companies is inspiring. We are planning to file an S-4 by the end of the month and are on track to file our regulatory approvals. In sum, I am even more convinced of the potential opportunity our combined companies represent in terms of talent and capabilities.”
ACE, Europe, Bermuda, Second Quarter 2015 Results, Evan Greenberg